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)