Jakarta, ID
Tuesday, May 29 2012, 17:47 PM

Business

New SOE directors told to improve performance

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Dahlan Iskan: Kompas.comDahlan Iskan: Kompas.comThe State-Owned Enterprises (SOE) Ministry has appointed new directors of strategic businesses with the expectation they will form “dream teams” that could compete with foreign firms.

SOE Minister Dahlan Iskan said on Thursday that he had recently picked professionals and highly dedicated people as directors of several strategic SOEs.

Muhammad Firmansyah Arifin, who previously led state-owned shipyard Dok Perkapalan Surabaya, will replace Harsusanto Soenarwan at ship-builder PT PAL’s helm.

"I have just appointed Firmansyah, former president director of DPS, as president director of PT PAL,” he said. "PT PAL should focus their work on building warships at least for the next two years. The company is not allowed to receive any work order to make commercial vessels.”

Indonesian strategic SOEs are typically involved in production of both military and civilian products. As the demand for military products are much less than those in the commercial sectors, most companies rely on civilian orders for their day-to-day activities.

Dahlan also said that he appointed some new directors in aircraft-maker PT Dirgantara Indonesia (DI) to make it a healthier company.

"The composition of human resources in PT DI is getting better now and they have received a lot of orders to make aircraft, too," he said.

"I also have allowed PT DI to receive loan from Bank Rakyat Indonesia as high as Rp 1 trillion this year."

Contacted separately, PT DI’s special assistant to the president director on quality assurance, Sonny Saleh Ibrahim, said that there were two new directors being appointed: finance director Uray Azhari and general affairs and human resource director Sukatwikanto.

“Previously, the finance director was held concurrently by aircraft integration director Budiman Saleh and general affairs and human resource director by technology and development,” Sonny told The Jakarta Post over the phone.

PT DI has just signed agreements with pioneer airline Nusantara Buana Air (NBA) to buy N219 commuter airplanes in a contract worth US$120 million.

A letter of intent was signed at the Singapore Airshow on Feb. 16 followed by a memorandum of understanding signed by both firms and RTCom Investment Com Ltd to finance the program.

PT DI also signed a cooperation agreement with ailing state-owned airline Merpati Nusantara Airlines to buy 40 Chinese-made COMAC ARJ-21 regional jets.

“We are cooperating with Merpati to buy the Chinese aircraft because they are willing to give us an offset of 40 percent,” Sonny said.

Offset is an industrial scheme in which the buying party is given certain amount of trade off from the total contract value, usually ranging from providing parts and components up to license for local assembly.

Flag carrier Garuda Indonesia signed a contract to buy 18 Canadian-made Bombardier CRJ 1000 NextGen regional jets without requiring any offset. (nfo)