Mayor Eri Is Ready To Merge BUMD In Surabaya Which Is Not Effective

Mayor of Surabaya Eri Cahyadi

JAKARTA - Regional-Owned Enterprises (BUMD) in Surabaya City, East Java, which are considered ineffective will be merged into one.

The Mayor of Surabaya, Eri Cahyadi, noted that there were a number of BUMDs that were deemed less effective and therefore needed to be merged.

"When there are BUMDs that are indeed ineffective, they can be merged," said Eri, Thursday, July 7, quoted from Antara.

The merger is part of a tactical and efficiency measure to revive BUMD which is considered less effective.

Even the former head of the Surabaya City Planning Agency said that the merger was no longer a discourse because the city government had submitted a regional regulation (perda) related to BUMD to the Surabaya DPRD.

However, Eri is not pleased to mention which BUMD will be merged because his party is still waiting for the completion of the discussion of the regional regulation related to the BUMD.

"Wait for the regional regulation first, this is still in the DPRD," he said.

Meanwhile, as previously reported, many BUMDs belonging to the Surabaya City Government are experiencing losses. This was revealed in the Accountability Activity Report (LKPJ) of the 2021 Surabaya APBD which was held at Commission B of the Surabaya City DPRD a few days ago.

The chairman of Commission B of the Surabaya DPRD, Lutfiyah, asked the Surabaya City Government Economic Section to change the strategy that is right on target, in supervision to organize BUMD for the better.

"BUMD must be healthy, so that it can earn profits and there can be dividends. So that it is in line with people's expectations," he said.

Deputy Chairman of Commission B of the Surabaya City DPRD, Anas Karno previously also highlighted that one of the BUMDs of the Pegirian Surabaya Slaughterhouse (RPH) was at a loss because the slaughter service rate was too low, namely Rp. 50,000 for every slaughter of one animal in the form of a cow.

"This is cheap, if left unchecked, I believe RPH will not develop and achieve the surplus income target," he said.

Director of PD RPH Surabaya Fajar Arifianto Isnugroho said the operational costs of PD RPH Surabaya were greater than revenue. A number of components that trigger losses include tax arrears and low rates for abattoir services.

"So far, RPH has implemented traditional slaughterhouse management. Butchers are only charged a cutting service fee of Rp. 50 thousand. Then all work from cutting to packaging is carried out by their team," he said.