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)