The Indonesian government plans to reduce the number of state firms to 69 over three years from the current figure of 139 to help make state companies more efficient and competitive, local press said Tuesday.

The plan, announced Monday by Vice President Jusuf Kalla, will be implemented through various mechanisms, including merger and privatization.

"The target is to reduce the number of state firms to 69 through mergers, privatizations, liquidations and other mechanisms, " Kalla was quoted by English daily The Jakarta Post as saying.

The plan was expected to bolster the performance of state firms amid increasing competition, both domestic and global.

State Minister for State Enterprises Sugiharto gave the following details of the resizing plan: reducing 139 companies to 102 in 2007, to 87 in 2008, to 69 in 2009, to 50 in the period between 2012 and 2015, and a further reduction to 25 after 2015, The Post said.

However, the plan would still have to await an agreement between the coordinating ministries, the Finance Ministry and other relevant ministries, as well as the approval of the House of Representatives.

"All the processes, such as mergers, ownership dilution, divestment, etc., will need the support of all the stakeholders, including the legislators," Sugiharto explained.

Source: Xinhua