Merpati books Rp 137.1b loss

JAKARTA (JP): PT Merpati Nusantara Airlines, a subsidiary of national flag carrier Garuda Indonesia, suffered an estimated loss of Rp 137.12 billion (US$58 million) last year, up from Rp 132 billion in 1995, Minister of Transportation Haryanto Dhanutirto said yesterday.

"However, Merpati is expected to turn this around with a profit of Rp 993 million this year," Haryanto told a working session of the House of Representatives.

He said Merpati was one of three state companies under the supervision of his ministry to suffer losses last year.

Garuda Indonesia, he said, lost Rp 87.44 billion last year, down from a Rp 342.79 billion loss in 1995.

"But if proceeds from the sales of its assets amounting to around Rp 212.09 billion were included, Garuda gained a profit of Rp 124.65 billion last year," the minister said.

Director General of Air Transportation Zainuddin Sikado said that Garuda had sold two hotels managed by its hotel subsidiary, PT Aerowisata, which also operates catering and transportation services.

However, he won't disclose the buyers and the sales prices.

Haryanto said that Aerowisata, another Garuda subsidiary, gained an estimated profit last year of Rp 56.1 billion, up from Rp 37.93 billion in 1995.

He said that PT Abacus Indonesia, a reservation service company partly owned by Garuda, was expected to gain a Rp 1.98 billion profit for last year, up from Rp 113 million in 1995.

"This year, Aerowisata's and Abacus' profits are expected to reach Rp 44.55 billion and Rp 1.63 billion respectively."

Haryanto said the 17 state enterprises overseen by his office had asked the government for Rp 1.32 trillion in additional equity in the 1997/1998 fiscal year.

"By the end of 1996, government equity in the 17 state enterprises had reached Rp 4.51 trillion, including Rp 2.51 trillion equity in Garuda," he said.

He said the transport companies were expected to pay Rp 135.81 billion in dividends and Rp 441 billion in taxes this year to the government.

The minister said yesterday the total assets of the 17 state enterprises had been valued last year at Rp 19.78 trillion, up from Rp 18.46 trillion in 1995.

Open sky

Haryanto told reporters yesterday that Indonesia would not adopt an open-sky policy.

Last week, Singapore became the first Asian country to conclude an open-sky agreement with the United States. Malaysia plans to conclude an open-sky accord with the U.S. in the next few months.

An open-sky plan terminates all restrictions on air routes and services from each nation.

The U.S. is arranging talks with Taiwan, Brunei and New Zealand on the policy.

Air Transportation Director General Sikado said yesterday that Indonesia must not follow Singapore which did not have any "domestic destinations".

"What they are targeting (by setting up the open sky deal) is Indonesia," he said, adding that there would be no sudden impact from the U.S.-Singapore open-sky deal.

Sikado said earlier that domestic airlines in Indonesia should ally with overseas air carriers to face globalization.

He said that strategic alliances would be much better for the country's aviation industry rather than an open-sky policy which might hamper domestic airlines. (icn)