Haryanto slams Merpati announcement<\/p>\n
JAKARTA (JP): Minister of Transportation Haryanto Dhanutirto
\ncriticized yesterday a widely-publicized statement made by state-
\nowned Merpati Nusantara Airlines about its decision not to lease
\n16 locally-made CN-235 aircraft.<\/p>\n
Haryanto told reporters after a meeting with Vice President
\nTry Sutrisno that the Merpati statement was premature because
\nnegotiations about the lease were still underway.<\/p>\n
Merpati president Ridwan Fataruddin announced on Tuesday that
\nthe airline had decided not to lease the CN-235 aircraft because
\nthe leasing fees asked were too high and the 14 CN-235s currently
\nin operation had been losing the airline money because of high
\noperation costs.<\/p>\n
\"We are still negotiating with several financial institutions
\nfrom Singapore, Japan and several other countries which offer
\ncredit with interest rates of eight to ten percent,\" Haryanto
\nsaid.<\/p>\n
He said it was a matter of regret that Merpati's management
\nhad made the statement while negotiations about the proposed
\nfinancing packages were still underway.<\/p>\n
Haryanto acknowledged that Merpati's debt is now equivalent to
\n11 times its capital.<\/p>\n
\"But Merpati's debts also represent liabilities of the
\ngovernment,\" he added.<\/p>\n
Ridwan said on Tuesday that Merpati had been a strong
\nsupporter of the state-owned IPTN aerospace company in Bandung,
\nWest Java, citing the IPTN products, such as the Casa-212 and the
\nCN-235, among its fleet of aircraft.<\/p>\n
\"But if we lease another 16 CN-235s at the offered fee of
\nUS$110,000 per unit per month our financial losses will increase
\nsharply,\" Ridwan said.<\/p>\n
He suggested instead that the government buy the 16 CN-235s
\nand transfer them to Merpati as new equity capital, as the
\ngovernment had done with the 14 CN-235s currently in the Merpati
\nfleet.<\/p>\n
Asked about government intervention in state companies,
\nHaryanto retorted: \"You should not think that government agencies
\nare stupid and incompetent.<\/p>\n
\"We know which interventions are appropriate.\"<\/p>\n
The minister added that the government wants to make Merpati
\nfinancially sound and to promote its healthy growth.<\/p>\n
Haryanto affirmed yesterday that the government would not
\nraise land transportation tariffs before the end of this year.<\/p>\n
\"Neither will the government provide subsidies to
\ntransportation companies because the era of subsidies has ended.
\nEven fertilizer for the farmers is no longer subsidized,\" he
\nsaid.<\/p>\n
The minister was commenting on the request of transportation
\ncompanies, notably Jakarta bus operators, that bus fares be
\nraised by up to 130 percent to offset the rising costs of their
\noperations.<\/p>\n
He said businesspeople should realize that profit margins in
\nthe transportation business are small. \"That is why the
\nmanagement should be solid,\" he added.<\/p>\n
Citing an example of management making a big difference,
\nHaryanto said one double-decker bus run by a private company in
\nJakarta on a particular day had made only Rp 200,000 by 10:00
\np.m., while a similar bus run by a state firm had made the same
\nsum by 4 p.m.<\/p>\n
Haryanto said the tariff increase proposed by the
\ntransportation companies was too high.<\/p>\n
He said the government cares about the commercial soundness of
\ntransportation companies but that such soundness should be
\nconsistent with the interests of the public.(vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/haryanto-slams-merpati-announcement-1447893297",
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