Plan To Launch Reorganization Of Subsidiaries Of BUMN Lauded

Jakarta, Dec 18 (Antara) - The plan of Minister for State Enterprises (BUMN) Rini M Soemarno to reorganize around 600 subsidiaries of BUMN is positive, says public policy observer Agus Pambagio. "Reorganization would be positive but the move must be followed with the placement of the right man on the right place," Agus said here on Wednesday. The management boards must be filled with professionals with good and clean track record, he added. Reorganization and assignment of professional managers with clean record would make BUMN competitive facing private companies in the country, he said. "Indonesia has many professional managers with clean track records . The posts of director must not become bone of contention for power," he said. Earlier Rini Soemarno said she would launch reorganization of the entire 600 BUMN subsidiaries as there are many of them are inefficient and continue to report losses. . "Identification of the subsidiaries and their offspring is expected to wrapped up in 2016," she said. Subsidiaries operating the same line of business could be combined in a merger for efficiency and that they would not become unnecessary burden for the parent company, she added. She said with the reorganization a number of disputes and problem between BUMN could be settled. She cited , state railway company PT Kereta Api Indonesia has legal case with state oil and gas company PT Pertamina in Palembang. "It is strange that BUMNs are involved in quarrel. With effective control such problem should not have happened among BUMNs," she said.