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.