What's wrong with PT Kereta Api?<\/p>\n
The fierce price competition among airline companies serving
\ndomestic routes has apparently affected state railway company PT
\nKereta Api. PT KAI's 2003 net profit of Rp 70 million (around
\nUS$8,000) is not only unimpressive, but completely unbelievable
\nfor such a large company.<\/p>\n
But, is it true that the airline price wars are the only thing
\ncausing KAI's shocking performance? The frank answer is no.
\nAccording to the Indonesia Railway Watch (IRW), several internal
\nfactors have been significant factors in disrupting the company's
\nperformance.<\/p>\n
IRW records show that KAI is finding it difficult to deal with
\ntechnical problems of locomotives, unpunctuality and collisions.
\nFrom January to February this year, IRW said, there have been 351
\ncases of locomotive technical failures, and 597 problems in
\nsignal and telecommunication systems. From May to December of
\nlast year there were \"only\" 164 problems affecting locomotives.<\/p>\n
According to IRW, last year average departure of trains was 10
\nminute late and the average arrival was 62 minutes behind
\nschedule.<\/p>\n
In February this year, the departure and arrival of the trains
\naveraged 20 minutes and 66 minutes late, respectively.<\/p>\n
The facts are obviously confirmation that KAI has never
\nperformed. Then the question is why?<\/p>\n
It is likely that the managerial concept of the company has
\nfailed to meet the recent demands and challenges. We are also
\nafraid that the management team consists of incapable persons,
\nthen the combination of the managerial concept and unqualified
\npersonnel that causes the company's poor performance.
\n-- Suara Karya, Jakarta<\/p>",
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"sponsor": "Okusi Associates",
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