What's wrong with PT Kereta Api?

What's wrong with PT Kereta Api?

The fierce price competition among airline companies serving domestic routes has apparently affected state railway company PT Kereta Api. PT KAI's 2003 net profit of Rp 70 million (around US$8,000) is not only unimpressive, but completely unbelievable for such a large company.

But, is it true that the airline price wars are the only thing causing KAI's shocking performance? The frank answer is no. According to the Indonesia Railway Watch (IRW), several internal factors have been significant factors in disrupting the company's performance.

IRW records show that KAI is finding it difficult to deal with technical problems of locomotives, unpunctuality and collisions. From January to February this year, IRW said, there have been 351 cases of locomotive technical failures, and 597 problems in signal and telecommunication systems. From May to December of last year there were "only" 164 problems affecting locomotives.

According to IRW, last year average departure of trains was 10 minute late and the average arrival was 62 minutes behind schedule.

In February this year, the departure and arrival of the trains averaged 20 minutes and 66 minutes late, respectively.

The facts are obviously confirmation that KAI has never performed. Then the question is why?

It is likely that the managerial concept of the company has failed to meet the recent demands and challenges. We are also afraid that the management team consists of incapable persons, then the combination of the managerial concept and unqualified personnel that causes the company's poor performance. -- Suara Karya, Jakarta