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Merpati poor negotiator: Haryanto

| Source: JP

Merpati poor negotiator: Haryanto

JAKARTA (JP): Minister of Transportation Haryanto Dhanutirto
says Merpati Nusantara, a state-owned domestic air carrier, has
performed poorly in its negotiations with the state-owned IPTN
aerospace company in Bandung.

"I intervened in the bargaining between Merpati and IPTN for
the procurement of 16 CN-235 aircraft. IPTN then agreed to lower
the price from US$13 million to $9.2 million for each CN-235. But
for nearly one year, Merpati has not decided whether to buy any
aircraft," Haryanto told reporters here yesterday after swearing
in several executives for companies under the supervision of his
office.

He said that IPTN will likely raise the price if Merpati does
not respond by November.

"I don't want to help Merpati anymore in bargaining. Besides,
the press is sure to object to my actions, saying that I've been
mixing in too much," he said.

He said that Merpati should realize that the CN-235 aircraft
will be beneficial for the company if they are operated properly.

"Only one of Merpati's existing 14 CN-235s is not in operation
because it is being repaired by IPTN. The other 13 aircraft are
now operating six hours per day and earning profits for Merpati.
Previously Merpati complained it was suffering losses because it
operated its CN-235s only two hours per day," he said.

Merpati, a subsidiary of the flag carrier Garuda Indonesia,
was criticized by Haryanto earlier for bargaining for the CN-235
at an "unbelievable price" that would barely cover the cost of an
airplane without wings.

The airline company, which has long suffered from financial
problems, has also signed an optional agreement with IPTN to
procure up to 100 N-250 aircraft.

New executives

Haryanto said yesterday that executives of the state-owned
transportation companies are required to have entrepreneurial
skills, creativity and innovative thinking to enable them to
anticipate various challenges in this era of globalization.

"In seaport management, we are facing fierce competition and
we ought to improve our performance," he said, adding that the
companies should also improve efficiency.

The executives sworn in by the minister yesterday included
Syamsul Bachri, who was appointed as president of PT Pelabuhan
Indonesia I, the firm which operates ports in Sumatra. Anwar
Djanah, Salman Sayuti, Ranendra Dangin and Agus Budi Prajogo were
sworn is respectively as president and directors of the state-
owned sea freighter PT Bahtera Adhiguna. Darmawan Tas'an,
Veronica H. Soeharto and Sofyan Pane were sworn in respectively
as president and directors of PT Varuna Tirta Prakarsya, the
state-owned customs document supplier. (icn)

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