Govt dismisses Kuntoro, installs Eddie as new PLN president

The government dismissed on Wednesday Kuntoro Mangkusubroto from the state-owned electricity company Perusahaan Listrik Negara or PLN, and installed Edie Widiono as the new president of the ailing company.

Eddie, previously director for marketing and distribution, had long been rumored to replace Kuntoro.

PLN chief commissioner Endro Utomo installed Eddie in a ceremony held at the company's headquarters this morning. Endro also reinstalled Hardiv Situmeang as director for planning. Hardiv was dismissed from the position last year.

There was no explanation for Kuntoro's dismissal. But reports said that the replacement of Kuntoro was said to be related to his persistent refusal to compromise against a number of project tenders at PLN. He was also criticized for the slow negotiation with the Overseas Private Investment Corporation, a U.S. government-controlled insurance agency that covers U.S. investment overseas.

But Kuntoro had insisted that the issues of private electricity, including the dispute with OPIC, had been taken over by the government and the problems had become a "government-to-government issues between the Indonesian and U.S. government.

Reports earlier today quoted government source as saying that Kuntoro had been summoned by a presidential spokesman who informed Kuntoro about the planned dismissal.

The source said that President Abdurrahman Wahid decided to pick Eddie after a number of ministers proposed various names.(Godang S.)