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ity-owned property developer PT Jakarta Propertindo (Jakpro) will overhaul management and human resources within the company and among its 10 subsidiaries to better handle construction contracts from the city administration.

Jakpro president director Budi Karya Sumadi said the reshuffling of 400 staff members aimed to shake the company out of its comfort zone, which was property, by taking on more challenging projects.

'€œWe want to be a better company with a greater vision and more competent human resources,'€ he said this week.

Jakpro'€™s 10 subsidiaries comprise PT Pulomas Jaya, PT Jakarta Konsultindo, PT Pembangunan Sarana Jaya, PT Jakarta Komunikasi, PT Jakarta Marga Jaya, PT Jakarta Akses Tol Priok, PT Jakarta Manajemen Estatindo, PT Jakarta Energi Utama, PT Jakarta Realty and PT Jakarta Tollroad Development.

Budi said the 10 subsidiaries would be merged into three large subholdings representing the company'€™s three business cores '€” property, infrastructure and utilities. The company has selected three subsidiaries to lead the three subholdings after assessing their business experience, performance and future prospects for development.

'€œPulomas will become a subholding and will be merged with Jakarta Konsultindo to handle property projects,'€ he said.

Meanwhile, Jakarta Komunikasi will be merged with Jakarta Marga Jaya, Pembangunan Sarana Jaya and Jakarta Akses Tol Priok. It will take the new name of PT Jakarta Infrastruktur. The newly named subholding company will manage several business units like the toll roads as well as the electronic road pricing (ERP) project.

Budi said Jakarta Manajemen Estetindo would be renamed PT Jakarta Utilitas and would be merged with Jakarta Energi Utama.

'€œIt [Jakarta Utilitas] will operate new utility projects, including gas stations, power plants and waste-management systems,'€ he said.

Jakarta Realty and Jakarta Tollroad Development will become affiliated companies.

Budi said to date the city administration had tasked Jakpro with various projects, including building 20 new gas-filling stations (SPBG) and mobile refueling units (MRU) this year.

'€œWe will also acquire ill-performing existing stations to be revamped,'€ he said, adding that the company had begun studying a power-plant project and was in the process of looking for land to build it on.

Budi said although Jakpro would be taking on new projects, property would remain its core business.

'€œWe will boost income by constructing commercial buildings like hotels, shopping centers and offices,'€ he said.

Jakpro paid taxes of just Rp 30 billion (US$2.46 million) to the city last year.

Meanwhile, public policy expert Agus Pambagio said it set a bad precedent for the city administration to be handing over its tasks to city-owned firms.

'€œIt is bad for the city'€™s financial records, as the unspent budget will increase,'€ he said, adding that the public still considered unspent funds a form of poor governance.