State transport firms' profits reach Rp 713b

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)