Government approves Garuda's restructuring

JAKARTA (JP): The government has approved Garuda Indonesia's financial restructuring program and will increase its equity capital to facilitate the firm's plan to float shares later this year.

Minister of Transportation Haryanto Dhanutirto told reporters after installing Garuda's new executives and top echelon officials at his office yesterday that the government will increase its equity in the airline by taking over the financing of seven Boeing aircraft currently operated by the company.

"It's true that the government has scheduled Garuda to float its shares this year and we have thoroughly prepared the plan, " he said.

Garuda's financial restructuring program has been approved by President Soeharto and the Ministry of Finance, he said.

Garuda still has a total debt of Rp 900 billion (US$384 million) for procuring five B-737-400 and two B-747-400 jets several years ago. The airplanes are now among the 60 aircraft in Garuda's fleet.

The government, which expects to list three state-owned firms each year, has so far listed four state-owned companies -- PT Semen Gresik, PT Indosat, PT Timah and PT Telkom -- on domestic and overseas stock markets.

Haryanto swore in three executives for Garuda yesterday. They are Achmad Subianto, who replaced Jazid Adam as the financial director, Sudarso Kaderi Wiryono as commercial director replacing Kussuyono and Bambang Wahyudi as technical director replacing Suratman.

The minister also installed T.B. Jogyanto as inspector general of the ministry replacing Muslim Masewa, Santo Budiono as director general of land transportation replacing Soejono, Rear Marshal R. Sri Diharto as chairman of the Meteorology and Geophysics Agency replacing Karjoto Santokusumo and Maj. Gen. Ayi Komaruddin as a ministerial adviser for land transportation affairs.

Surprising

"This is not a sudden replacement. The replaced officials have all reached retirement age," Haryanto said, declining to answer a barrage of questions about what is perceived as a sudden shakeup.

The public relations officers at the Ministry of Transportation and Garuda, who had no background information on the new officials, said they had learned about the impending changes from newspaper reports on Monday.

Kussuyono, who celebrates his 66th birthday today, said that he learned about the termination of his career at Garuda, which started in 1960, on Tuesday evening.

Suratman, 53, said he had anticipated his replacement two weeks ago. He was installed as Garuda's technical director in 1990.

Achmad, who served since 1993 as an expert staff at the Agency for Technology Assessment and Application (BPPT), replaced Jazid. Jazid, 64, had been installed in January 1993 as the financial director to replace Achmad Subianto.

Karjoto, who began heading the Meteorology and Geophysics Agency seven years ago, said that he was notified of his replacement on Monday.

Muslim Masewa, 57, was inaugurated yesterday as chief commissioner of PT Pelni, the state-owned inter-island shipping firm, after resigning from the transportation ministry.

Masewa and Soejono were widely reported to have been the sources of allegations made last year to Inspector General for Development Kentot Harseno that Minister Haryanto was involved in malfeasance and irregularities.

Kentot made thorough investigations into Haryanto's conduct. He confirmed many of the allegations in a confidential letter to President Soeharto late last year.

Kentot's confidential reports to the President were leaked to the mass media, thereby setting off a nationwide controversy.

President Soeharto later moved to stop the controversy by declaring the case closed. (icn)

Photo -- Page 2