Sutiyoso turns down offer to have debt-ridden PPD

Sutiyoso turns down offer to have debt-ridden PPD

Damar Harsanto, The Jakarta Post, Jakarta

The Jakarta administration has given the cold shoulder to the
Ministry of Transportation over its plan to hand over ailing
state-owned Perum Pengangkutan Penumpang Djakarta (PPD) to the
administration amid the bus company's lingering financial woes.

Governor Sutiyoso demanded on Tuesday the central government
solve the company's financial problems before handing it over to
the city administration.

"Personally, I agree with the idea of handing over PPD to the
administration since it is in line with the spirit of autonomy.
However, we hope the central government solves the company's
financial problems so they do not burden the administration,"
Sutiyoso said at City Hall.

Sutiyoso was asked to comment on a statement made by Minister
of Transportation Hatta Radjasa and the state minister of state
enterprises during a hearing with the House of Representatives on
Monday, that the government planned to hand the company over to
the city administration.

City Transportation Agency head Rustam Effendy Sidabutar
objected to the plan, saying the administration did not stand to
benefit.

"Of course we don't want to accept buses that are not
roadworthy," Rustam said.

"Besides which, we have no time to sell the assets being
transferred to the city administration to cover the company's
massive debts," Rustam said.

Data on the official website of Perum PPD shows that the
company has 813 buses, most of which have exceeded their
effective lifespan of 15 years for a public bus. Of the 813
buses, only 575 are operational, plying 61 of the 152 routes PPD
serves across the capital.

The company's financial woes are partly due to the size of its
workforce -- though only 575 of its buses are on the road, the
company has 8,824 employees.

The government said it would need at least Rp 250 billion to
restore the company to financial good health. The company has not
paid its employees' salaries for five months.

Separately, hundreds of drivers and crew members of PPD went
on strike on Tuesday, demonstrating in front of the Presidential
Palace in Central Jakarta to demand their salaries. They had also
demonstrated on Monday.

The rally caused a traffic jam on Jl. Medan Merdeka Utara.

The administration said it had ordered other bus operators to
take over routes normally served by PPD to prevent commuters from
being stranded.