Perum PPD must diversify its business: Official<\/p>\n
JAKARTA (JP): The secretary-general of the Ministry of
\nTransportation, Muchtaruddin Siregar, suggested that the state-
\nowned transportation service Perum PPD could improve its
\nperformance by diversifying.<\/p>\n
\"PPD, for instance, could cooperate with larger companies to
\ntransport government employees,\" Siregar said after attending a
\nceremony at PPD's headquarters yesterday.<\/p>\n
During the ceremony, PPD's outgoing president Brig. Gen.
\n(ret.) Soedarko handed over his chairmanship to his successor Dwi
\nWahyono Sjamhudi. The company's outgoing director of operations,
\nCol. (ret.) Djati Santoso, and outgoing director of general
\naffairs and personnel, Anwar Helmy, handed over their positions
\nto Catur Bambang Wiyono and Lt. Col. Simonius Benediktus Koynya,
\nrespectively.<\/p>\n
The company's new president and directors were sworn in by
\nMinister of Transportation Haryanto Dhanutirto on Monday. The new
\nmanagement board was installed two years ago.<\/p>\n
When asked to comment on the diversification, Dwi Wahyono said
\nthat other possible businesses might include gas stations.<\/p>\n
\"PPD is currently developing a gas station on Jl. Daan Mogot
\nin West Jakarta. The area could also be developed by private
\nfirms in a cooperation with PPD,\" he said.<\/p>\n
The state-owned company was assigned to provide transportation
\nfor Jakartans at economical fares, but continues to suffer long-
\ntime financial problems.<\/p>\n
PPD merged with seven private public bus companies in December
\n1984. The company has lost money since 1981.<\/p>\n
In 1985, after the company merged with seven private bus
\nfirms, PPD lost Rp 6.4 billion (US$2.7 million). The losses
\nincreased steadily to Rp 7.68 billion in 1986, Rp 22.16 billion
\nin 1987 and dropped slightly to Rp 20.64 billion in 1988.<\/p>\n
Last year, PPD recorded Rp 15.98 billion in losses and Rp 4.33
\nbillion in the first semester of this year.<\/p>\n
One of the main problems faced by PPD is its aging fleets. The
\ncompany owns 1,196 buses, of which only 165 were manufactured one
\nto five years ago. A total of 585 buses were assembled six to
\neight years ago, while 446 are nine to 15 years old.<\/p>\n
The company only has 165 reliable buses.<\/p>\n
Several years ago, PPD set up a cooperation agreement with a
\nnumber of private bus companies, including PT Senawangi, PT
\nIntras Jaya and PT Volgren. The private firms are responsible for
\nrefurbishing the aging buses, which are then re-operated.<\/p>\n
PPD has also joined PT Fajar Utama, PT Garuda Mas and PT Setia
\nKawan, which have so far supplied PPD with 1,200 new buses.<\/p>\n
Under a revenue sharing arrangement, PPD expects to turn a
\nprofit from its cooperation with the private firms. (icn)<\/p>",
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