PT Pelni`s problem is passenger service and how to reduce losses through efficiency improvement."
Jakarta (ANTARA News) - Indonesia state-owned shipping company PT Pelni will sell three of its 32 ships to counter the companys losses, its President Director Sulistyo Wimbo Hardjito stated here on Thursday.

Hardjito noted that the decision was taken after a state-owned enterprises leadership meeting as the three vessels had suffered a functional decline and were no longer in service since last year.

"The companys efficiency will suffer if it continues to keep the ships as it will have to pay for their maintenance costs and the salaries of the workers," Hardjito pointed out.

One of the ships to be sold is the passenger ship "Kerinci" that operated in the countrys western and eastern regions, he said but stopped short of divulging details about its selling price.

Hardjito remarked that the plan was part of the companys efforts to increase efficiency, which was one of the priorities he had undertaken after his appointment as the companys president director in May.

He said the company meanwhile is now studying specifications and the types of new ships that it will buy.

Hardjito added that the company will be considering three types of ships: a special passenger ship, a special cargo ship, or a combination of a passenger and cargo ship.

"We are still studying it. So, I will only reveal its economic value later," he stated.

Besides implementing an efficiency program, PT Pelni will increase its passenger service, he noted. He also pointed out that the poor passenger service was the companys main challenge.

Hardjito remarked that he had already toured Natuna and Riau Islands as a regular passenger to evaluate the companys service before being named president director.

"PT Pelnis problem is passenger service and how to reduce losses through efficiency improvement," he explained.

In 2013, PT Pelni booked a profit of Rp2.4 trillion, but it also posted a loss of around Rp630 billion due to factors such as inflation that has increased the cost of ships, Hardjito stated.

(Reporting by Indra Arief Pribadi/Uu.H-YH/INE/KR-BSR/O001)

Editor: Priyambodo RH
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