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Military headquarters speeds up reform of businesses

Tempo Interactive - September 23, 2005

Jakarta – Following the selling of the Kartika Eka Paksi foundation's 11-percent in PT Bank Artha Graha for not depositing the requested capital, the working group within Indonesian Military (TNI) headquarters (HQ) is still discussing the grouping of the corporation's legal base and military business capital.

All this will be surrendered to the government. "Currently, this matter is still being discussed because there is a number of laws regulating military businesses," said TNI HQ's head of the information center Maj. Gen. Kohirin Suganda Saputra following the granting of Indonesia's medal of honor to Singaporean Army Chief Lt. Gen. Ng Yap Chung in Jakarta on Friday (23/09).

The laws include Law No.25/1992 on cooperative business, Law No.28/2004 whioch regulates foundations and Law No.1/1995 on a limited company. "We still discuss the grouping of the corporation so that there will be synchronization of the three laws," said Saputra.

Saputra considered that the deadline on September 27, 2005, given by the Indonesian Defense Department should not be considered as a technical deadline because the discussion of military businesses will result in several solutions regarding which business that must be submitted to the government and still be managed by TNI.

Military businesses are not centralized, meaning that TNI HQ does not subordinate the military foundations. Each foundation has its own legal base. "This must be formulated together," said Saputra.

In accordance with the plan, the TNI chief wishes to settle the military businesses within two years. "This means there will be a decision in October 2005 that the implementation of the businesses will take place from October 2005-October 2006. In November 2006-November 2007, there will be an evaluation and in 2007, the reform of military businesses hopefully will be settled," said Saputra.

Regarding compensation for military businesses being submitted to the government, Saputra was yet able to decide this matter. "Following the discussion at Indonesian Military headquarters by TNI forces and the Indonesian Defense Department, the mechanism of military businesses shall be coordinated with State-Owned Enterprises (SOEs) and the Indonesian Finance Department," said Saputra. (Fanny Febiana-Tempo News Room)