Indonesian Political, Business & Finance News

Govt to replace KAI management

| Source: JP

Govt to replace KAI management

The Jakarta Post, Jakarta

The government is planning to replace the management of state
train operator PT Kereta Api Indonesia (KAI) due to its failure
to prevent accidents as well as to improve the company.

State Minister of State Enterprises Sugiharto said the high
number of train crashes and the expiry of the tenure of the
incumbent management in June were the main reasons behind the
replacement plan.

"The reshuffle will take place immediately. However, we still
need time for the (replacement) plan," he was quoted as saying by
Antara news agency on Saturday in Bandung during a meeting with a
number of executives of state enterprises.

Sugiharto, however, refused to name the candidates for the KAI
management as well as when the reshuffle would take place. At
present, Oemar Berto leads the KAI.

"We should see the reason for the reshuffle in a more
comprehensive way... It (the reshuffle) is necessary because the
government is reviewing the operations and business of PT KAI as
well as our railway system," he said.

Sugiharto said that aside from replacing the directors, there
should also be comprehensive measures to rehabilitate the railway
infrastructure managed by the company in order to improve its
service and capacity.

Elsewhere, Vice President Jusuf Kalla said on Sunday that the
government should intervene in helping to solve PT KAI's complex
problems.

"PT KAI has numerous problems, from infrastructure, subsidy,
consumers bad habit of not paying tickets and many more. The
company needs thorough improvement. Therefore, the government is
assigning the state minister of state enterprises and minister of
transportation to help solve the problems," he said as quoted by
Antara.

The recent accident involved three electric commuter trains in
Pasar Minggu, South Jakarta, last Thursday, killing three and
injuring dozens of others.

PT KAI immediately set up a special investigating team to
determine the cause of the accident, which was the seventh this
year. Meanwhile, the Jakarta Police have questioned six people,
including the two train drivers, over the incident but the police
have not yet decided whether the accident was caused by
mechanical problems, a faulty system or negligence.

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