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Bukaka, for example, may be outdated when airports adopt digital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)