Kadin : PGN case warning for government

Jakarta (ANTARA News) - The chairman of the Indonesian Chamber of Commerce and Industry (Kadin) MS Hidayat called on the government here on Thursday to be firm in dealing with state-owned companies following the recent case of PT Perusahaan Gas Negara (PGN).

The value of the shares of the state-owned gas company dropped sharply recently causing a shock not only to country`s but to the world capital market as well.

"The government must be firm as it has affected a state-owned company. The sharp drop in the value of PT PGN`s shares has also shocked the world stock market. In this case it is clear that state-companies have to be able to maintain their performance and commitment to projects they have agreed to build," he said.

Hidayat attributed the fall of PT PGN`s shares to the lack of certainty or doubts following PT PGN`s failure in building the projects as it has promised.

"Whatever the reason it is doubted," he said.

In view of that he said the government had to know that a publicly listed company could not only put up programs that would never be implemented.

"Good corporate governance must be upheld. Everything already put in the program must be carried out, otherwise confidence will drop," he said.

PT PGN`s shares were closed at Rp8,350 per share on Thursday, or stagnant like the day before.