Sat, 14 Oct 1995

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)