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)