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Ministry appoints new directors for KAI and PPA

The State Owned Enterprise (SOE) Ministry appointed directors for the state railway company PT Kereta Api Indonesia (PT KAI) and the state asset management company (PPA) on Wednesday

The Jakarta Post
JAKARTA
Thu, February 26, 2009

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Ministry appoints new directors for KAI and PPA

The State Owned Enterprise (SOE) Ministry appointed directors for the state railway company PT Kereta Api Indonesia (PT KAI) and the state asset management company (PPA) on Wednesday.

“I hope the new directors can improve their respective company’s performance, profit margin, services and good corporate governance,” Sofyan Djalil, the minister of SOE said in his speech.

The minister appointed Ignasius Jonan as the new president director for PT KAI, replacing Ronny Wahyudi who has been appointed to the board of commissioners for state train car producer PT INKA.

The minister also appointed new directors for PPA.

Andi Saddawero was appointed as the new asset management director, Saiful Haq Manan as restructuring and revitalization director, Wandhy Wira Riady as finance and investment director, Tunggul Rajagukguk as risk management director, and Tri Herutantoyo as legal, human resources, and general affairs director for the company.

Sofyan said that a change  in the board of directors was something usual as the companies needed to refresh their management in order to improve their performance.

He said that he chose Ignasius Jonan, who did not build his previous career within PT KAI, to speed up the transformation of the company.

Ignasius Jonan is a former CEO of Bahana Pembinaan Usaha Indonesia (BPUI) from 2001 to 2006, a state-owned holding company of investment bank PT Bahana Sekuritas Tbk, after which he worked as managing director and head of investment banking for Citicorp in Indonesia from 2006-2008.

Meanwhile, PT KAI’s former director of operational Soedharmo Ramadhan has been promoted as the vice president director. The minister also appointed Sulistyo Wimbo Hardjito as a member of the board of directors.

Sofyan said that the new directors have to continue the current train rehabilitation program which has an allocated budget.

Furthermore, Sofyan hopes that the new KAI management can help serve at least 20 to 30 percent of the 30 million commuters in Jakarta in the next two to three years. He also pointed out the need to revitalize the South Sumatra rail tracks in order to deliver enough coal to publicly listed coal mining firm PT Tambang Batubara Bukit Asam (PTBA).

“Currently, the South Sumatra rail tracks can only deliver around eight million tons of coal per year, while PTBA has abundant coal reserves. I hope that KAI can improve its performance by delivering at least 20 million tons per year,” he said.

Commenting on his new task in KAI Jonan said that he would focus on improving the quality of services, security, and timeliness while continuing the current projects.

“PT KAI is a big company. The former directors have done a good job but it can be improved,” he said.

The government had allocated Rp 19 trillion (US$2.09 billion) last December from the state budget for a three-year revitalization of PT KAI.

The Ministry of Communication and Information data revealed that in 2008, KAI recorded Rp 4.32 trillion in revenue with an operating profit of around Rp 40 billion. Its net profit was estimated at around Rp 2.5 billion to Rp 12.5 billion.

KAI projected that this year the company was aiming to increase growth in revenue by 4.6 percent to Rp 4.5 trillion. (fmb)

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