PPD: A perennial headache

PPD: A perennial headache

Public transportation in the capital has been a problem for
decades and, unfortunately, no solution has yet been found by
those responsible.

One of the major problems haunting the streets of Jakarta is
the notorious service of the mismanaged public transportation
company Perusahaan Pengangkutan Djakarta (PPD), which is jointly
controlled by the Ministry of Transportation and the Office of
the State Minister for State Enterprises.

Both ministries seem to be overwhelmed by the unresolved
problems they themselves have created with their lack of
professionalism. Workers' strikes over salaries are commonplace,
damaged buses have not been replaced and the problem of
cannibalizing buses has never been effectively dealt with by the
ministries.

What, then, have these two ministries done for PPD, which is
supposed to provide Jakarta residents with cheap transportation?
There are many ground transportation services in Indonesia
managed by either private companies or individuals, that have not
just survived, but have also managed to reap profits that have
enabled them to expand their businesses. Why, then, does PPD,
which owns about 450 buses, fail?

During a recently held demonstration, PPD bus drivers
suggested that the company be dissolved because the management
had not been able to effectively eradicate corruption in the
company. Alleging that corruption was rife among those at the
managerial and operational levels, the drivers warned that all
efforts to save PPD from total collapse would not only be
useless, but would also inflict huge financial losses to the
state.

The drivers expressed their worry that the Rp 250 billion the
government is expected to inject to cure the company of its ills,
would only go to the management and stop there, without any clear
account relayed to either their employees or the public.

Given the chaotic management, the drivers' suggestion that PPD
be disbanded is, on the one hand understandable, but questionable
on the other, as dissolving the company is certain to create a
serious new problem: unemployment. The company has about 5,000
employees who are unhappy with their average monthly salary of Rp
300,000.

Amid this climate of frustration among both employees and the
management, the Jakarta city administration was offered the
option of taking over the debt-ridden company. Ferdinand
Nainggolan, the assistant to the state minister for state
enterprise in charge of logistics and tourism, only recently
discussed with Governor Sutiyoso the possibility of selling PPD,
which is burdened by massive debts.

Sutiyoso hinted that it was "not impossible" that Jakarta
would purchase PPD, but only on the condition that the company's
internal problems are first resolved. The gesture, anyway, sheds
a ray of hope that PPD might still be saved.

Unfortunately, however, some parties doubt that the city
administration's hint was motivated by the noble intention of
helping the public by providing better transportation services.
This doubt is not entirely baseless, because the administration's
track record in managing its companies is not really impressive.
The very fact that many of the city's assets have been sold to
private firms could be cited as an indication that the
administration's capability in managing profit-oriented companies
is questionable.

Furthermore, as the city administration is currently seeking
more money to fund its development projects, many people also
suspect that the administration is merely lured by PPD's assets
-- assets that could later be resold to private companies.

PPD controls 712,242 square meters of land in various
locations in the city, where its depots, offices and villas
currently stand. The total value of this collective property is
estimated to be more than Rp 360 billion.

Nevertheless, it must be admitted that PPD has played a very
significant role in providing people with transportation,
although over the years its problems have become chronic.
Improperly managed, PPD is at this junction widely seen to
reflect the poor handling of transportation in the capital by the
administration, which has so far responded -- ineffectively -- to
the problem, mainly by constructing new roads.

If PPD is taken over by the city administration, we hope that
Governor Sutiyoso will be extra careful in having the company
"overhauled". A new and comprehensive program to revive the
company must be outlined in a transparent and professional
manner.

Only in managing PPD professionally, will the city
administration be able to provide the public with better and more
humane public transportation services, which, after all,
is a citizen's basic right.