The merger will further improve coverage and expand the networkJakarta (ANTARA) - The merger of Damri and PPD is aimed at improving the state-owned bus transport enterprises, according to State-Owned Enterprises (SOEs) Minister Erick Thohir.
He said he is confident that the move would improve the condition of the companies. The merged companies will be able to make their best efforts to improve performance and expand their market in the future, he added.
"Turns out both of them were affected by the COVID-19 pandemic. The merger will further improve coverage and expand the network," the minister said in a statement received here on Tuesday.
President Joko Widodo's approval for the unification of the two state-owned public transport companies was a strategic effort pursued by the ministry to support the two companies.
He informed that the merger was a corporate action, which was based on the equivalent business condition of the two entities. Thohir said he saw unification as the best measure so that the two companies would not clash or overlap due to their similar business focus.
The ministry, through Deputy Minister Kartika Wirjoatmodjo, said that the ministry has proposed that Damri receive Rp870 billion in state capital in 2023.
Damri will perform its tasks and carry out business development to provide fleets on pioneer routes and in National Tourism Strategic Areas, electric bus fleets for cities through the buy-the-service method, as well as increase the company's business capacity.
The merger of Damri and PPD has been stipulated in Presidential Decree Number 25 of 2022 about the 2023 government regulation preparation program. Minister Thohir initiated the merger.
“The regulation regarding the merger of Perum PPD into Perum Damri by the SOEs Minister and the Finance Minister is in accordance with their respective authorities based on statutory provisions," the decree stated.
Related news: President reviews infrastructure development at Jakarta main stations
Related news: Ministry records 3.9 million public transport passengers on Dec 19-24
Related news: Jakarta to see public transport consolidation in 2023: minister
Translator: Aji Cakti, Mecca Yumna
Editor: Sri Haryati
Copyright © ANTARA 2022
