Iglas and Sandang had little choice than to liquidate

Government had little choice than to liquidate two state-owned companies PT Industri Sandang Nusantara (textile) and PT Industri Gelas (glass manufacturer) on years of losses.

SOEs minister Sofyan Djalil said both companies have no prospect to continue their operations, Kompas reported this morning. 

Government has 63.82% shares in Industri Gelas and 100% at PT Industri Sandang. Last year, Industri Gelas booked net loss of Rp81.3 billion, while Industri Sandang posted Rp71.9 billion losses. But government decided to help three troubled SOEs: PT Merpati Nusantara Airlines, PT PAL Indonesia (shipbuilding), and PT Djakarta Lloyd (shipping).

Industri Sandang operates nine factories, of which five has been closed down and leaving 2,000 workers without job. Four units remained in operation with about 4,300 workers. Government initially planned to inject Rp50 billion to revive the company, but failed. Last February, about 500 workers went on strike to demand explanation about the clarity of their status.

Meanwhile, PT Industri Gelas (Iglas) is one of the oldest bottle manufacturers in Indonesia with installed capacity of around 128,000 tons per year. The company once controlled 35% market share. 

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