Govt names Transtoto as new Perhutani president

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.