Minister summons Merpati president over refusal

Minister summons Merpati president over refusal

JAKARTA (JP): Minister of Transportation Haryanto Dhanutirto
has summoned Merpati's president Ridwan Fataruddin in response to
Ridwan's widely-publicized refusal to lease CN-235 aircraft made
by the state-owned aircraft manufacturer.

A source at Haryanto's office said yesterday that the 30-
minute personal meeting was held on Wednesday, shortly before the
minister left for Germany and Brunei.

On Tuesday, Haryanto also met with Merpati directors, but
Ridwan was absent because of his health, the Antara new agency
reported yesterday.

Both meetings were held as the two parties, Haryanto and
Merpati, aired their different opinions of Merpati's plan to
lease 16 locally-made CN-235-200s.

Rumors had been spreading that Ridwan would soon be fired as
Merpati's top executive.

Ridwan told reporters recently that the airline had decided
not to lease the CN-235-200 aircraft because the leasing fees,
set at US$110,000 per month per plane, being asked by private
leasing firm PT Arthasaka Nusaphala were too high. Meanwhile, the
14 CN-235-10s currently in operation have been causing the
airline to lose money due to high operation costs.

Haryanto criticized Ridwan's statement, saying: "It was
premature because negotiations about the proposed financing
packages were still underway."

Haryanto earlier criticized Merpati, a subsidiary of the
national flag carrier Garuda Indonesia, for operating the CN-235-
10s inefficiently. The minister said that Merpati's debts are now
equivalent to 11 times its capital.

Ridwan denied the charge, saying that Merpati's debt had not
reached that level because the 14 CN-235s were purchased by the
government.

"The 14 CN-235-10s currently operated by Merpati are
government equity. The finance ministry has paid IPTN Rp 239
billion for the airplanes," Ridwan said.

Merpati's debt is now comprised mostly of current, short-term
liabilities which are manageable, Ridwan added.

"The current liabilities are at a normal level. They may
fluctuate from one month to another as they consist of such
obligations as landing fees," he said.

Ridwan said he had suggested that the government buy the 16
CN-235-200s and transfer them to Merpati as new equity, as the
government had done earlier with the 14 CN-235-10s.

He said that such an arrangement would help Merpati maintain
sound financial condition and enhance its growth. (icn)