THE IMPACT OF PRIVATIZATIONS TO THE PUBLIC SECTOR COMPANIES PERFORMANCE

Abstract

Privatizations has been practiced by Indonesian government to effort improvement on public sector companies performance and efficiency. This research is applied on 5 public sector companies included M the privatizations first programmed, 18 inall 111 bk., PT. TELKOM Tbk., PT. Semen Gresik Tbk., PT. INDOSAT Tbk., red PT. Araka Tambang l bk., wing observation windows between 1992 until 1999. There were 17 financial ratios used to represent solvability, liquidity, rentability. and z score. Objectives or this research Is to evaluate the companies (Manual performance after privatizations relative than before. Output are tested by Wilcoxon Signed Rank Test Research outcomes indicated that there were no significant d ficrent, dough the compnies performance after privatizations and lo make its liquidity fell on high. This evident hypothetically caused by the gm:tat:on windows, so that the banelit of privatizations have not appeared Ili such a real condition Introduction Research r uKomes from Mae epode (I V99) stated that Unament per fm mince in the efficiency, productivity. and profitability Perms of public sector companies in Indonesia have lower level among ASEAN countries. The Indonesian government assign to fix public sector companies (FIUMN) that took subsidies, but had some continued loss. This loss caused by miss management, and dual functional tending, except missed by the long al-11) ecmrmnie oriels. BUM N Ire agent of development that become profit center of APRN, since the 1997 budget year. Privatizations programmed is a transfer of share holders of companies Lc the private investors. Privatizations measured be importance in list global business competition (Nankati, 1990). Privatizations defined as transfer of effective control limn company to manage and owned by pried° consthiteney. The popular definition of pr•iatization in