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DPR Tells BUMN Minister Dahlan Iskan to Replace all Merpati Directors

Bali News: Indonesia, Merpati Nusantara Airlines, BUMN, State-owned enterprises, DPR, government bail out, Dahlan Iskan
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The State News Agency Antara reports a working committee dealing with the State-owned airline Merpati Nusantara at the Indonesian House of Representatives (DPR-RI) is recommending that the Minister of State-Owned Enterprises fire the airline’s directors in order to save the company.

“We ask the Minister of State-owned enterprises (BUMN) Dahlan Iskan replace the directors of Merpati with people who are clean, not involved in cases reflecting a moral hazard, or stand accused of corruption, collusion or nepotism,” declared the chairman of the working committee on Merpati, Erik Satya Wardhana.

Wardhana’s comments were shared with the press following a meeting with BUMN Minister Dahlan Iskan at the Parliament on Monday, July 14, 2014.

During that meeting, Commission VI of the DPR-RI delivered the report and findings of the working committee containing 5 recommendations for the salvation of the airline.

Among those recommendations is the stipulateion that the new directors of Merpati should be people well versed in the aviation business.

“Merpati’s directors must also understand precisely and completely the problems at the Airline, and possess a realistic business strategy to commence the operation of the company and achieve profitability," he said.

The committee reportedly uncovered facts about the airline showing missteps by Merpati’s management that were taken outside the company’s regulations.

Poor coordination between the directors of Merpati were also uncovered and a lack of due diligence in making critical management decisions were made that, in the opinion of the committee, resulted in losses and the eventual cessation of flight operations.

In response, the BUMN Minister said plans to replace the directors of Merpati were in hand. Dahlan said: “The current directors are ready to be replaced at any time, they only continue to serve because we have no suitable replacements at this time.”

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