Indonesian Political, Business & Finance News

What's wrong with PT Kereta Api?

| Source: SUARA KARYA

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

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