Bukaka hires consultant for major changes
Bukaka hires consultant for major changes
JAKARTA (JP): Publicly-listed PT Bukaka Teknik Utama signed yesterday a contract with international consulting firm Price Waterhouse, in a bid to become a multinational company by the year 2000.
"Through cooperation with the worldwide consulting firm, we want to improve all human, natural and financial resources to compete with other multinational corporations and enter the Asian market," Bukaka's president, Fadel Muhammad, announced shortly before signing the agreement.
Fadel and Price Waterhouse's managing director, Kemal A. Stamboel, signed the contract in a ceremony, which was also attended by Bukaka's chief commissioner, Jusuf Kalla, and a director of the consulting firm, Marina R. Tusin.
Fadel said that the contract, valid for one year, calls for Price Waterhouse to conduct a study for the improvement of Bukaka's management, marketing and other business activities.
He added that after the completion of the study, Bukaka will rearrange its management by improving its regional competitiveness, either by promoting potential employees or recruiting new professionals.
"Bukaka will take measures to stabilize its income sources by making its revenues more dependent on longer term build-operate- transfer and build-operate-own arrangements rather than short- term contracts," said Fadel.
He said his company is taking part in the domestic privatization of telecommunication facilities in the country's eastern area on a 15-year build-operate-transfer scheme.
Fadel said that Bukaka, which is primarily engaged in engineering and manufacturing, is eager to enter the Asian market particularly for its main infrastructure products, including steel towers.
With its eight divisions -- special vehicle manufacturing, road construction machinery and equipment, plant construction, oil and gas equipment, material handling systems, steel towers and energy, airport equipment and international trading -- Bukaka manufactures 40 kinds of products.
Prior to the signing ceremony, the firm held a managerial workshop, featuring economist Dorodjatun Kuntjoro-Jakti in a presentation on economic globalization and its impact on infrastructure development in Indonesia.
Dorodjatun, in response to Fadel's question, said that to survive global competition, Bukaka must adjust itself to development plans in the region.
He said the airport steel bridges currently produced by Bukaka, for example, may be outdated when airports adopt digital transportation systems.
He added that the firm's business intelligence should be developed to increase its competitiveness.
The company's report said that Bukaka expects a 25 percent increase in its profits to about Rp 44 billion (US$19 million) this year from the audited profit of Rp 35 billion last year.
The report also estimated that its sales revenues will likely increase to Rp 292 billion this year from last year's Rp 224 billion.
Bukaka exports steel products to Hong Kong, Singapore, Malaysia and China. (kod)