Govt plans to merge 18 state firms

Govt plans to merge 18 state firms

JAKARTA (JP): The government is considering merging 18 state
companies under the Ministry of Transportation into a handful of
firms to improve their performance.

A source at the ministry said four port management companies
(PT Pelabuhan Indonesia I, II, III and IV) would be merged, while
airport management companies PT Angkasa Pura I and II would also
become a single entity.

"In addition to this, shipping companies PT Pelni, PT Djakarta
Lloyd and PT Bahtera Adhiguna would be merged while bus company
PPD would be united with Damri to run transportation in Jakarta,"
the official was quoted by Antara as saying.

But the reports did not mention the other nine companies that
were included in the merger plans.

According to the agency, PT Pelabuhan Indonesia IV president
Soemardi confirmed the plan. But he was unsure if the port
management companies would be merged into one or two entities.

"Technically, the merger will not disturb operational
activities and supervision of the companies," he said.

The commercial director of PT Bahtera Adhiguna, Ranendra, said
he welcomed the plans, adding that the mergers would increase the
companies' efficiency and enable them to give greater
contributions to the government.

Such merger plans were frequently discussed during hearings
between former minister of transportation Haryanto Dhanutirto and
House of Representatives Commission V on communications but were
never realized.

When asked for confirmation, Director General for Land
Transportation Santo Budiono said the mergers were likely to be
realized.

He said he fully supported the plan to merge PPD and Damri to
run public transportation in Jakarta, noting that PPD was a
money-losing company while Damri continued to improve. (jsk)