Tue, 31 Oct 1995

Former Garuda chief agrees with Ridwan

JAKARTA (JP): Wage Mulyono, former president of the national flag carrier Garuda Indonesia, says the refusal by Merpati Nusantara Airlines president Ridwan Fataruddin to lease 16 CN-235 aircraft was a managerially professional and correct decision.

Mulyono, who was Garuda president until January this year, told the Sinar newsweekly that Merpati has the right to choose the type of aircraft it wants to operate on the basis of commercial viability.

Mulyono was chief commissioner of Merpati, a subsidiary of Garuda, during his three-year term as the chief of the national flag carrier.

"The state-owned IPTN aerospace company has failed to market its CN-235 airplanes even on the domestic market because the aircraft operations are not profitable. Many private companies refuse to use that aircraft," he said.

Thorough studies should be carried out to ascertain the reasons behind the gross inefficiency of the CN-235 aircraft, Mulyono added.

Asked about the imminent dismissal of Ridwan as the president of Merpati, confirmed by Air Transport Director General Sikado on Thursday, Mulyono strongly suggested that the government retain Ridwan in the position.

"Ridwan is a graduate of the Jakarta School of Economics of the University of Indonesia and has a lot of experiences in the airline industry," he said.

Mulyono said that if Ridwan is replaced by a "yes-man" the effect on the airline will be disastrous.

"Merpati will go bankrupt," he said.

Director General Sikado told a hastily-convened press conference on Thursday evening that Ridwan would soon be replaced as Merpati chief for violating procedures in the construction of Merpati's new head office in Jakarta.

Sikado said Ridwan's imminent replacement had nothing to do with his refusal to lease 16 CN-235s from PT Arthasaka Nusaphala, a company jointly-owned by the Bakrie and Humpuss business groups.

However, Ridwan categorically denied Sikado's statement, saying that all the necessary procedures had been followed in the construction of the office building.

Ridwan, who has been working at Merpati for more than 26 years, said that the building project was approved by Merpati's shareholders (Garuda and government representatives) on Dec. 24, 1991. He added that he was not appointed Merpati president until Aug. 2, 1992.

"It was the Garuda chief who was responsible for notifying the ministers of transportation and finance about the building project," Ridwan said.

In any case, he added, the finance minister, as the government nominee shareholder in all state companies, had in fact approved the Merpati building project. (vin)