Hartono wants army bank to be more professional
Hartono wants army bank to be more professional
JAKARTA (JP): Army Chief of Staff Gen. R. Hartono called yesterday for more professionalism in military-run businesses so that the commitment to improve soldiers' welfare could be fulfilled.
Inaugurating the Artha Graha Building, managed by the Artha Graha Bank and which is partly owned by the Army's Kartika Eka Paksi foundation, Hartono said the bank should improve its professionalism in order to compete with other banks in servicing clients, including military members.
"The bank's profit margin should (be managed in such a way as to) place Army soldiers and their families in priority," said Hartono, who is also chairman of the foundation.
Foundation secretary T.B. Silalahi said in a press briefing after the ceremony yesterday that the Kartika Eka Paksi Foundation has set aside a portion of its businesses' profits to improve the welfare of Army troops and their families.
"This is the social mission of the foundation," according to Silalahi, who is also minister of administrative reforms.
The foundation annually grants the Army Rp 12 billion (US$5.3 million) from its profit.
The building is located at the Sudirman Center for Business Development. Also attending the inauguration yesterday were Minister of Defense and Security Edi Sudradjat, Hartono's predecessors Gen. (ret.) Rudini and Gen. (ret.) Wismoyo Arismunandar, Chief of the Army's Strategic Reserve Command Maj. Gen. Tarub and business tycoon Sudono Salim.
Silalahi, also chairman of the Artha Graha Bank's board of directors, said the annual grant is used to develop housing for low-rank soldiers, military barracks and other buildings at military resorts and districts across the country.
"It's the commitment of this foundation, since its establishment, to help the improve the welfare of Army members," Silalahi said, adding that the annual grants are needed to complement the low-military budget.
In addition, since it was established in 1967, the foundation has granted a total of Rp 8 billion for the development of approximately 33,000 houses for low-rank servicemen.
The foundation is currently running numerous businesses in the transportation, banking and hotel industries, including the Artha Graha Bank, the Kartika Plaza and Borobudur hotels.
Tommy Winata, deputy chairman of the bank's board of directors, said the bank, established in 1992 with an initial capital of Rp 7 billion, has advanced and now has total assets of Rp 829 billion.
"The bank's annual profit is about Rp 6 billion and a part of it is set aside for Army welfare projects," he said.
The bank's shareholders are Kartika Eka Paksi Foundation (40 percent), PT Cerana Artha Putra (30 percent) and PT Karya Nusantara Permai (30 percent). The two last companies are owned by Tommy and Sudono Salim.
Regarding the demand for professionalism, Tommy said that the bank, currently employing some 200 ex-servicemen and children of military officers, implements strict recruitment procedures.
The bank has a total of 1,000 employees.
"(The strict procedures) are needed to maintain our credibility," Tommy said. (rms)