Garuda undertakes massive restructuring

Garuda undertakes massive restructuring

JAKARTA (JP): Director General for State Enterprises Bacelius Ruru said yesterday that the national flag carrier, Garuda Indonesia, is conducting a massive restructuring program to improve its efficiency.

He said that the scheme is part of the airline's preparations to go public.

Garuda and a number of state-owned companies, including Bank Negara Indonesia (BNI), PT Krakatau Steel and subsidiaries of electricity company PLN are now being prepared for public offerings, both on domestic and international stock exchanges.

Ruru said that the performance of the national flag carrier should be absolutely "right" before it launches its public offering.

Garuda announced yesterday that the restructuring is now underway to improve efficiency in all parts of its activities.

A number of unimportant positions in the airline's organization have been eliminated not only to reduce the operational costs but also to speed up the decision-making process.

The airline said in a statement that at least 38 positions in the middle management level have been eliminated to cut bureaucratic delays.

"The middle management has been reduced to 38 posts from 72 previously," the statement said.

Ruru said yesterday that the present management is not allowed to raise the salaries of the airline's employees as part of its consolidation measure.

Garuda Indonesia employs 14,313 people and operates 19 domestic and 35 international routes.(rid/hen)