Minister's brother vying for Garuda post

Minister's brother vying for Garuda post

The Jakarta Post, Jakarta

State Minister of State Enterprises Laksamana Sukardi's
brother was among candidates to run the country's flag-carrier
Garuda, raising concern over the possibility of questionable
practice in the selection process.

Laksamana confirmed the candidacy of Samudera Laksamana, but
he dismissed concern about potential nepotism in the selection
process.

"Samudera has people supporting him; I don't think there is
any need to make an issue of it," Laksamana said on the sidelines
of a hearing with House of Representatives Commission V on
industry and trade affairs.

"It's being politicized, no doubt about it," he added.

According to Antara, Samudera has worked with Garuda for 20
years and has a good track record. He is now the director of PT
Abacus, Garuda's subsidiary, which handles reservations.

The other candidates are Emirsyah Satar, Garuda's financial
director, Rudy Hardono, operations director, and Richard
Sukadarusman, engineering and marketing director.

But it was Laksamana too who made the first move in stirring
controversy over Garuda.

Last January he announced plans to reshuffle Garuda's top
management, reasoning the company needed fresh faces.

But the decision came just as Garuda won international praise
for its successful transformation into a world-class airline.

Garuda's comeback has marked the end of a four-year-long
restructuring process, led by then president director Abdul Gani.
He resigned shortly after Laksamana's announcement.

Laksamana's move to reshuffle Garuda's management prompted
suspicions of a power struggle inside the national airline.

But Garuda was in a tight spot throughout the three-decade
rule of former president Soeharto.

The company was believed to have been used as a cash cow for
his family's and cronies' businesses.

Garuda entered into agreements with them at unfair prices,
which drove the company into near-collapse when the 1997
financial crisis choked off its revenue.

The restructuring process that followed saw the company
slashing jobs and fleets, yet also enabled it to restructure some
US$1 billion in debts it owed to various foreign finance
institutions.