Pontjo seen as Garuda commissioner

JAKARTA (JP): Pontjo Sutowo, the chairman of the Association of Indonesian Hotels and Restaurants, has been named as a possible future commissioner for national flag carrier Garuda Indonesia.

Minister of the Empowerment of State Enterprises Tanri Abeng said on Thursday that Pontjo, also the owner of the Jakarta Hilton International Hotel, was an appropriate figure to sit on the airline's supervisory board.

"Since the tourist industry is closely related to the airline industry, appointing him as a commissioner might be good for Garuda," he said on the sidelines of a seminar on the privatization of state enterprises.

Tanri said Garuda Indonesia, which is currently under severe financial strain due to the monetary crisis and mounting foreign exchange debts, was one of many state enterprises rampant with collusion, nepotism and collusion.

"We have to remove all such practices to allow Garuda to operate efficiently," he said.

Garuda Indonesia has an overseas debt of US$400 million. To survive the crisis, the company is in the process of streamlining its operations, which includes a plan to sell its $300 million maintenance facility unit at Soekarno-Hatta International Airport.

It has also managed to reschedule $285 million of its overseas debts due to mature this year. (aly)