Feb 19, 2011

Garuda BOD & Kartika Wirjoatmojo

Indonesian flag carrier which just listed at Indonesia Stock Exchange, PT Garuda Indonesia (Persero) Tbk may face replacement on its board of director (BoD). The upcoming directors' replacement is not related with the failure of Garuda Indonesia's IPO.
"This is nothing to do with the IPO," said Mustafa Abubakar, Minister of State-Owned Enterprises (SOEs), yesterday as quoted by Kontan today.  
This is an appropriate action if the Ministry plans to oust Garuda's directors as the government has prepared the replacement since mid last year. In fact, up to now, there is no single director at Garuda Indonesia has been ousted from his position.
According to Mustafa,  the Ministry has three strong candidates for each position at Garuda. But, it depends on the evaluation result as well. When confirmed, acting Finance Director Elisa Lumbantoruan didn't hear about the plan.
In mid March 2010, the Ministry has extended period of Garuda President Director Emirsyah Satar as he is still required to revitalize Garuda as well as focus in IPO. For sure, Emisyah and one director's positions have been expired since March 17 2010.    
Kartika Wirjoatmojo?
A source close to the matter said an investment banker and also Managing Director Kartika Wirjoatmojo at Mandiri Sekuritas, one of joint lead underwriters in Garuda IPO, is rumored as one of strong candidate for new Finance Director at Garuda.
"Rumor said Kartika is being prepared to be finance director at Garuda, replacing Elisa Lumbantoruan," the source said. 
The proposed candidate of Kartika now seems attainable since Mandiri Sekuritas, and two other lead underwriters Bahana Securities and Danareksa Sekuritas which have been boldness to swallow Rp2.25 trillion of unsold Garuda shares and put them inside their books, become share holder in Garuda with 12% shareholding in total.       
"Three joint lead underwriters are now becoming shareholders in Garuda. They can tweak Garuda directors if they divagate from their strategic plans," a banker said.   

Disclosure: No position at the stock mentioned above.

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