State owned postal service company PT Pos Indonesia (Posindo) said its business has improved much in the last two years and it has been able to significantly reduce loses.

Such improvement, according to president director Hana Suryana, is the result of the transformation in its core business, business culture and organisation.

In 2006, Posindo earned Rp 1.412 trillion compared to Rp 1.410 trillion in 2005. "The good thing is that we have also curbed loses to Rp 51 billion from Rp 162 billion in previous year," Suryana said.

The biggest income comes from mail and package deliveries, which accounts for Rp 641 billion or 61.3 percent of the company’s total revenue, followed by income from international mail services (Rp 213 billion) and finance business (Rp 210 billion).

Similarly, the minister of Indonesia’s state-owned enterprises, Sugiharto said that the joint venture between Posindo and PT Gading Sari Indonesia is part of the company’s effort to further enhance the company’s productivity.

The minister said the opportunity in this sector is wide open. Posindo’s capabilities, including 32,000 offices nation-wide, will put it on a high bargaining power when it comes to joint venture terms.

¨C Siktus Harson