Bukit Asam to begin laying off employees<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
Publicly listed coal mining company PT Tambang Batubara Bukit
\nAsam Tbk will gradually lay off a total of 364 employees
\nbeginning later this year, as its Ombilin coal mine operation in
\nWest Sumatra would be shut down in 2005, a company top official
\nsaid.<\/p>\n
Bukit Asam president Ismeth Harmaini told reporters on Monday
\nthat the company would provide a handsome Rp 30 billion (US$3.37
\nmillion) in total compensation for the employees.<\/p>\n
\"The layoff is unavoidable, due to the closure of the
\n(Ombilin) coal site,\" he told reporters following a meeting with
\nthe House of Representatives Commission VIII on mining and
\nenergy.<\/p>\n
He said that the layoff program was expected to be completed
\nin 2004.<\/p>\n
Bukit Asam is closing down the Ombilin operation as coal
\nreserves in the area has been depleted.<\/p>\n
The company, which also controls a huge coal mining site in
\nSouth Sumatra's Tanjung Enim area, will start a reclamation
\nprogram at the Ombilin site later this year.<\/p>\n
Currently, the company has 4,086 employees posted throughout
\nseveral mining sites in South and West Sumatra, including Tanjung
\nEnim, Ombilin and Banjarsari.<\/p>\n
Several Commission VIII legislators, however, expressed
\nconcern over the planned layoff, as it could potentially create
\nsocial unrest in the areas, particularly with the upcoming 2004
\ngeneral elections.<\/p>\n
Legislators urged Bukit Asam to try to transfer as many
\nworkers as possible from the Ombilin site to other coal mining
\nsites.<\/p>\n
The government controls 83.74 percent of Bukit Asam, while the
\nremaining shares are held by public investors.<\/p>\n
The company sold 9.57 million tons of coal last year, posting
\na net profit of Rp 177.95 billion.<\/p>",
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