Wednesday, February 28, 2007

Joke of the day: City adm to acquire Garuda

When I read The Jakarta Post article; Jakarta legislative council is urging the city admnistration to purchase a stake in ailing flag carrier Garuda Indonesia, I can't help to raise a question: Why would the city invests Rp3.2 trillion in the airline business while the city needs to fix the poor public infrastructures or clean up the city's muddy-smelly rivers?

But even if the administration would invest in Garuda, I wouldn't be surprised. As the Post reported, since Sutiyoso first came to power in 1997, his administration has injected Rp2.7 trillion in 62 city-owned companies while these companies only contributed 1.5% of the city's total revenue last year.
Look at how the council's economic commission head Nurmansjah Lubis (Prosperous Justice Party/PKS) argued the rationale behind the Garuda move; "it would be a previlege for Jakartans to own the national airline an we are sure that it would make a great contribution to the city budget."
First of all, I doubt the councilor really read Garuda's financial statement. It would take years if not decade for the company to make profit.
Second, I think Jakartans would prefer to have subway train than own stakes in Garuda.
Mr Nurmansjah's concern on Garuda is legitimate. But I think that's not we, the Jakartans, need the most. It's like Jakarta 'senator' Marwan Batubara (also from PKS?) who actively waged nationalism sentiment in Cepu oil and gas block dispute. Marwan's concern on Cepu is also legitimate, but I don't think Jakartans elected him as their 'senator' to talk about Cepu in East Java while he said nothing of the current floods that punished Jakartans for almost a month.

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5 Comments:

Anonymous Anonymous said...

-Nurmansjah Lubis (Prosperous Justice Party/PKS) argued the rationale behind the Garuda move; "it would be a previlege for Jakartans to own the national airline an we are sure that it would make a great contribution to the city budget."-

What a sad guy, looking things from his own perspective. I live in jakarta and will not very very very proud of having Garuda. Might the "jakartans" that referred by Nurmansjah is people around him, include himself.
I totally agree with your opinion yosef

February 28, 2007 11:21 AM  
Anonymous Anonymous said...

There are a few issues at stake here. The budget is collected from Jakartans and meant to be for the Jakartans; so if there is surplus then the fund should go to some safe investments such as fixed income or time deposits in case of rainy days. Or the City should lower it taxes to address the surplus issue like that in HK or Singapore - thats accountability which is sored missed in this culture.

Picking an investment needs specialised skills and I doubt the track record of the Admin with its not-so-midas-touch has anything to show for or convince others that Garuda is a sound investment. Does he know the basis of an airline business; I doubt it!

It looks like its just another way to skin a cat.

February 28, 2007 12:36 PM  
Anonymous zf said...

"it would be a previlege for Jakartans to own the national airline an we are sure that it would make a great contribution to the city budget."

Simply sad idiotic moronic thoughts by a person who called himself a policymaker...It's pretty sad to think about how this big country pretty much being abused and badly managed by their own people...don't let this country becomes a failed state please...

March 01, 2007 8:15 AM  
Anonymous Anonymous said...

DKI needs to realise it is not a profit centre - its only temporary custodian of our capital city and a public service.

Unless Garuda Planes are going to transport all the DKI garbage and dump it in Papua then the scheme is unjustifiable.

March 01, 2007 9:35 AM  
Anonymous SDK said...

Great contribution my foot! Did Lubis actually go to school? or he just an idiotic. Garuda is hemorrhaging and it will continue to do so as long as it is state owned. A democratic government should not run or own businesses but it should facilitate business activities. And when you do that the economy will thrive and the government will make money from taxes.

March 01, 2007 8:54 PM  

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