Perum PPD must diversify its business: Official

JAKARTA (JP): The secretary-general of the Ministry of Transportation, Muchtaruddin Siregar, suggested that the state- owned transportation service Perum PPD could improve its performance by diversifying.

"PPD, for instance, could cooperate with larger companies to transport government employees," Siregar said after attending a ceremony at PPD's headquarters yesterday.

During the ceremony, PPD's outgoing president Brig. Gen. (ret.) Soedarko handed over his chairmanship to his successor Dwi Wahyono Sjamhudi. The company's outgoing director of operations, Col. (ret.) Djati Santoso, and outgoing director of general affairs and personnel, Anwar Helmy, handed over their positions to Catur Bambang Wiyono and Lt. Col. Simonius Benediktus Koynya, respectively.

The company's new president and directors were sworn in by Minister of Transportation Haryanto Dhanutirto on Monday. The new management board was installed two years ago.

When asked to comment on the diversification, Dwi Wahyono said that other possible businesses might include gas stations.

"PPD is currently developing a gas station on Jl. Daan Mogot in West Jakarta. The area could also be developed by private firms in a cooperation with PPD," he said.

The state-owned company was assigned to provide transportation for Jakartans at economical fares, but continues to suffer long- time financial problems.

PPD merged with seven private public bus companies in December 1984. The company has lost money since 1981.

In 1985, after the company merged with seven private bus firms, PPD lost Rp 6.4 billion (US$2.7 million). The losses increased steadily to Rp 7.68 billion in 1986, Rp 22.16 billion in 1987 and dropped slightly to Rp 20.64 billion in 1988.

Last year, PPD recorded Rp 15.98 billion in losses and Rp 4.33 billion in the first semester of this year.

One of the main problems faced by PPD is its aging fleets. The company owns 1,196 buses, of which only 165 were manufactured one to five years ago. A total of 585 buses were assembled six to eight years ago, while 446 are nine to 15 years old.

The company only has 165 reliable buses.

Several years ago, PPD set up a cooperation agreement with a number of private bus companies, including PT Senawangi, PT Intras Jaya and PT Volgren. The private firms are responsible for refurbishing the aging buses, which are then re-operated.

PPD has also joined PT Fajar Utama, PT Garuda Mas and PT Setia Kawan, which have so far supplied PPD with 1,200 new buses.

Under a revenue sharing arrangement, PPD expects to turn a profit from its cooperation with the private firms. (icn)