State transport firms' profits reach Rp 713b

JAKARTA (JP): State-owned transportation firms more than doubled their profits to Rp 713.89 billion (US$324.09 million) this year, Minister of Transportation Haryanto Dhanutirto says.

"This is higher than we originally expected. We thought this year's profits would reach only around Rp 676 billion," the minister told reporters after meeting with President Soeharto at Merdeka Palace yesterday.

Official data show that state-owned transportation companies registered a profit of Rp 394.12 billion last year.

Haryanto said that this year's high profits are partially due to the sales of used aircraft by Garuda Indonesia, which generated about Rp 100 billion in profits. He did not specify the types of aircraft.

He said his office expects the profits of state transportation firms to further increase to Rp 845.68 billion in early January due to "some business moves".

Haryanto would not disclose what those moves are.

The main factors behind this year's achievements are better services, higher quality human resources and greater efficiency, the minister said.

Garuda

One shining example of state transportations firms, which significantly raised their profit, is Garuda, the national flag carrier.

"Garuda has offered much better services this year although there is still plenty of room for improvement," he said.

Garuda's profits for calendar 1994 increased by 32.68 percent to Rp 350.64 billion, Haryanto said.

Garuda executives said the company sold two used Boeing 747-200s to an unnamed U.S. company for an unspecified amount in July.

Haryanto also explained yesterday that Garuda will only sell some of its shares to Royal Dutch Airlines KLM -- its new partner in an operational alliance which was formed last week -- after the national flag carrier gets rid of its debt.

"Every year Garuda spends from Rp 500 billion to Rp 700 billion to pay back its debts," he said, adding that the planned transaction with KLM is likely to take place in about two years time.

Minister of Finance Mar'ie Muhammad told the House of Representatives early this month that Garuda's privatization plan will require the investment of a foreign airline with a good global reputation.

The government expects that a reputable foreign investor will help in the domestic airline's efforts to realign both its management and financial structures, thereby enabling it to offer common shares on the domestic and international capital markets.

Haryanto said the Jakarta transportation company PPD is the only state-owned transportation firm to suffer a deficit last year, with a loss of Rp 15.91 billion, while the railway company, Perumka, which used to lose money in past years, hit the break-even point.

Two airport companies, PT Angkasa Pura I and PT Angkasa Pura II, enjoyed profits of Rp 27.5 billion and Rp 70.47 billion respectively. (hdj)