PTPN III Named Holding Company For State Plantation Companies

Jakarta, Sept 24 (Antara) - The State Enterprise Ministry said PT Perkebunan Nusantara (PTPN) III will soon become the holding company for all state plantation companies. PTPN III is expected to start operation with new function as a holding company before the new government is formed next months, Muhammad Zamkhani, a deputy at the office of the state minister for state enterprises, said here on Tuesday. President elect Joko Widodo (Jokowi) and vice president elect Jusuf Kalla will be installed on Oct 20 and a new cabinet is expected to be announced immediately. Earlier it was reported that President Susilo Bambang Yudhoyono already signed a government regulation to form a plantation holding company on Sept. 18, 2014. The holding company will control 13 other state plantation companies - having various plantation crops. Zamkhani said the government regulation has to be followed up with corporate action through shareholders` meeting to change the statute of the parent company and capital participation of each subsidiary. He did not say the reason for naming PTPN III as the parent company for state plantation companies. "The name of business entity of the holding company also is yet to be determined pending the shareholders` meeting," he said. Observers have said one of the reasons is that PTPN III has the best performance among the state plantation companies. Based on data at the state ministry for state enterprises, in 2013, the 14 state plantation companies had assets valued at Rp65.22 trillion , up from Rp61.07 trillion in the previous year. Their total sales are forecast to reach Rp77.59 trillion in 2014 with net profit target set at Rp4.06 trillion. Capital expenditures of the 14 companies were set at a total of Rp11.51 trillion in 2014 , lower than Rp16.34 trillion last year. The plan to form a holding company for state plantation had long been in the pipeline . Under the system , state plantation company is expected to be more financially powerful and competitive and efficient.