Four top officials to be replaced

Four top officials to be replaced

JAKARTA (JP): Minister of Communications Giri Suseno will soon
remove four top officials of his ministry in the wake of the
crisis hitting state transportation companies, recent public
transportation accidents and corruption allegations.

Giri said yesterday that secretary-general of the ministry
Muchtarudin Siregar would be replaced by Anwar Supriadi, former
president of the state railway operator Perumka; director general
of air transportation Zainudin Sikado by Soenaryo, president of
the state-owned Curug Pilot Training Center; director general of
sea transportation Soentoro by Agus Rusdianto; and head of the
National Search and Rescue Agency Harjanto by Setyo Rahardjo.

He was speaking to reporters following the installation
ceremony of a new board of directors of the state-owned Jakarta
public transportation operator (Perum PPD), Perumka and bus
transportation operator (Damri).

The new presidents of the companies are Anton Sudarto, Edi
Haryoto and Darius Djana respectively.

Giri expected the new board of directors would more innovative
in running the transportation companies amid the year-long
economic crisis, which has led to soaring prices of imported auto
components amid falling purchasing power of the people.

Giri said earlier that the number of functioning urban public
busses had dropped by more than 50 percent in June from 89,781
units in August last year due to difficulties in obtaining
imported auto components following the sharp depreciation of the
rupiah against the U.S. dollar.

Difficulty

Perumka's Eddie separately said the currency crisis had also
caused severe difficulties for the train operator as 85 percent
of its locomotives were imported.

He forecast the 1998 net profit would be only Rp 100 million
from an earlier target of Rp 26 billion.

Giri also said he had called on the country's electricity
authority to lower the electricity tariff for Perumka's electric
train operating in Greater Jakarta.

"The electric train provides service for lower income
commuters."

As part of the agreement with the International Monetary Fund,
the government in May raised the electricity tariff level for the
electric train operator, which previously enjoyed cheap
electricity because of the company's social mission.

Giri also expressed concern about the high level of accidents
in the public transportation sector, which investigations
revealed were due to poor management.

The country's airline sector was also beset by difficulties as
passenger volume dropped but operating costs soared due to the
plummeting rupiah, he said. (rei)