Merpati gets new chief

Merpati gets new chief

We wonder why Garuda Indonesia's president Soepandi is still
trying to be euphemistic about the Friday's dismissal of Merpati
Nusantara Airlines chief Ridwan Fataruddin. After all, over the
past two weeks the general public has followed the dispute
between Ridwan and Minister of Transport Haryanto Dhanutirto.

Haryanto himself disclosed earlier in the week, through Air
Transport Director General Zainuddin Sikado, that Ridwan would
soon be fired, citing a violation of procedure in the
construction of Merpati's new office building in Jakarta.
Haryanto's account, which has been categorically denied by
Ridwan, followed Ridwan's public announcement that the Merpati
management would not lease 16 Indonesian-built CN-235 aircraft
from PT Arthasaka Nusaphala because of the planes' high operating
costs, combined with the high leasing fee asked.

We had sincerely hoped that Soepandi would enlighten the
public as to what had really happened with Merpati as soon as he
returned home on Wednesday, together with President Soeharto's
entourage, from a two-week overseas trip. The controversy over
the lease fee asked by Arthasaka and Sikado's blunt accusations
against Ridwan in relation to the office building have been
puzzling us.

We do not share the view, expounded by Soepandi, that Ridwan's
dismissal was a matter of course; part of the dynamic process
within the airline company. The controversy and polemics which
preceded the move strengthened the impression that Ridwan's
replacement was not a natural end to his 26-year career at
Merpati.

Obviously, it is entirely the right of the government, as the
sole shareholder in Merpati, to reconstitute the airline's
management. But it is also the right of the people to know what
has really happened at Merpati. We think it would have been in
conformity with the spirit of the reform of state companies,
launched in 1989, if Soepandi had explained the process of
negotiations concerning the proposed lease. In keeping with the
drive for greater transparency in state companies, he might have
commented on the question whether the price asked by Arthasaka
was competitive in international terms.

Official explanations are even more essential after several
newspapers printed, last week, a leaked document from the chief
of the Government Audit Agency which strongly recommended to the
ministers of finance and transportation that Merpati's current
lease of eight Fokker-28 jets from Arthasaka be terminated or
amended because it was largely to Merpati's disadvantage.

It is not fair to Arthasaka if the news reports and rumors
about the company are not straightened out by the government.
Allowing negative public inferences to be drawn about Arthasaka
is not conducive to the development of the aircraft leasing
business. If we are really serious about promoting the sales of
the aircraft made by the state-owned IPTN aerospace company in
Bandung, the business climate for leasing companies should be
made favorable. For IPTN, as for most aircraft manufacturers, it
is virtually impossible to sell aircraft on a cash basis. In
fact, leasing companies and other kinds of financial institutions
have a crucial role to play in facilitating aircraft marketing.