Govt names Transtoto as new Perhutani president

Rendi A. Witular, The Jakarta Post, Jakarta

The government reshuffled on Wednesday the management of ailing PT Perhutani, the country's largest forestry company, following a lingering dispute between the company's management and its workers.

After assessing possible candidates for about a year, the Office of the State Minister for State Enterprises named Transtoto Handadhari as the new president director of the company, replacing Marsanto.

Transtoto was a spokesman at the Ministry of Forestry. During his career at the ministry, he established numerous connections with non-governmental organizations involved in forestry management and conservation.

After his appointment, Transtoto told The Jakarta Post his short-term strategy for Perhutani was to restore the firm's operations following the protracted dispute between the previous management and workers.

"I will reorganize the management to revive the company's operations. Another immediate measure is to rehabilitate forests that were damaged as a result of mismanagement," he said.

Transtoto also plans to review the prices of the company's products, as well as its marketing and distribution strategies, in order to increase profit.

Among the new directors at the company are Upik Rosalina Wasrin as production director, Achmad Fachrodji as marketing director, Cipta Purwita as finance director and Sondang Goeltom as general affairs director.

Perhutani manages forests in Java and Madura. The company controls about 2.6 million hectares of forests. It has vast industrial production forests, selling the logs to domestic and international markets.

The company recorded sales of about Rp 2 trillion (US$206 million) in 2003. However, it is now on the verge of bankruptcy following a drastic decline in net profit.

Environmentalists have blamed Perhutani for contributing to the destruction of natural forests in Java and Madura with its unsustainable forestry management.