Govt Reiterates Not To Inject Funds To Pos Indonesia

Jakarta, Jan 31 (ANTARA) - State Enterprises Minister Dahlan Iskan reiterated on Thursday that the government will not inject funds to state postal firm PT Pos Indonesia to expand its businesses. "The government will not give state equity participation (PMN) to Pos Indonesia," he said on the sidelines of a function marking the signing of a Memorandum of Understanding (MoU) involving Pos Indonesia, state lender Bank Mandiri, and state insurance company Taspen to set up a joint venture bank. The minister said Pos Indonesia has difficulties expanding its businesses because of fund difficulties. "I don`t want to know about it. The Pos Indonesia president director has higher salaries for the post so he must think of it and be creative," he said. The government has decided not to inject funds to state firms, except if they play a strategic role for the state, he said. Pos Indonesia is currently focusing on developing its businesses, ranging from logistics, banking services, property to retail business. In its 2013 business plan, the company allocates an estimated Rp873 billion for capital expenditure. Of the total, Rp580 billion will be used for investment of its subsidiaries, Rp10 billion for property, Rp245 billion for fixed assets, and Rp37 billion for intangible assets. The company had originally planned to make an initial public offering (IPO) of its shares this year to raise funds. However, the State Enterprises Ministry as the authorized shareholder does not allow the company to float its shares to the public.