PPD is offered to city administration<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
The city administration has been given the opportunity to
\npurchase state-run bus company Djakarta Transportation (PPD), but
\nGovernor Sutiyoso said no deal could be made until all of the
\ncompany's internal problems had been resolved.<\/p>\n
The state minister for state enterprise's assistant for
\nlogistics and tourism, Ferdinand Nainggolan, made the offer
\nduring a meeting with Sutiyoso at City Hall on Monday.<\/p>\n
\"We discussed many things about how to resolve our
\ntransportation problems, including talking about PPD. In
\nprinciple, the governor has agreed to take over PPD once we have
\ncompleted a restructuring program,\" Ferdinand said after the
\nmeeting.<\/p>\n
PPD, which is jointly managed by the Office of the State
\nMinister for State Enterprises and the Ministry of
\nTransportation, is struggling under massive debts and a 1:12
\nration of buses to employees.<\/p>\n
\"This means that one bus is handled by about 12 crew members,\"
\nsaid Ferdinand, adding that an acceptable ratio was 1:5.<\/p>\n
The company has been poorly managed since its founding, and
\nthe government has never been able to bring the company up to
\nstandard.<\/p>\n
PPD currently has some 5,000 employees and a fleet of about
\n450 buses.<\/p>\n
Ferdinand said his office was studying three restructuring
\noptions for PPD. The first option is to lay off 3,000 employees
\nto bring the ration of buses to crew members down to about 1:5.
\nThe second option is to increase its bus fleet to 1,500.<\/p>\n
The third option, which Ferdinand said was the best, is to
\ntemporarily lay off employees while restructuring the company.<\/p>\n
PPD's situation has caused conflict between the company's
\nmanagement and the bus crews, who are unhappy with their
\nsalaries, which can be as little as Rp 300,000 per month.<\/p>\n
PPD bus crews planned to go on strike on Monday to demand
\nraises and to protest possible layoffs.<\/p>\n
Ferdinand estimated that to make PPD healthy, the government
\nwould have to inject some Rp 250 billion into the company.<\/p>\n
Governor Sutiyoso stressed that the city administration would
\naccept the PPD offer only if the company's internal problems were
\nresolved, including PPD's massive debts and its unacceptable
\nratio of buses to crew members.<\/p>\n
\"It is unlikely the city administration will take over PPD
\nwhile its problems still have not been resolved, as that would
\nonly prove to be an additional burden for us,\" said the head of
\nthe city transportation agency, Rustam Effendi.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ppd-is-offered-to-city-administration-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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