Govt decides to dismiss DI workers<\/p>\n
Febiola Desy Unidjaja, The Jakarta Post, Jakarta<\/p>\n
The government finally decided on Thursday to proceed with a
\nplan to dismiss the employees of troubled state-owned aircraft-
\nmaker PT Dirgantara Indonesia (DI), despite large-scale protests
\nfrom workers.<\/p>\n
The decision was taken at a Cabinet meeting.<\/p>\n
\"The meeting decided ... to maintain the dismissal plan,\"
\nCoordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti
\nsaid after the meeting.<\/p>\n
He said there would be severance pay for the employees, but
\nhis office had yet to decide on the amount.<\/p>\n
He said that the compensation funds would be taken from cash
\nobtained by the Indonesian Bank Restructuring Agency (IBRA) from
\nthe sale of various assets.<\/p>\n
Dorodjatun added that the number of workers to be dismissed
\nhad yet to be decided. That decision would be made by Minister of
\nManpower and Transmigration Jacob Nuwa Wea.<\/p>\n
In July, the management of DI decided to lay off 9,670
\nemployees as the company had suffered continuing financial
\ndifficulties. The unilateral decision sparked protests as
\nemployees claimed they had not been consulted before the decision
\nwas implemented.<\/p>\n
The government then intervened in the case.<\/p>\n
Formerly known as PT Industri Pesawat Terbang Indonesia
\n(IPTN), DI was one of the 10 strategic industries under the
\nsupervision of former technology minister B.J. Habibie in the
\n1980s.<\/p>\n
The Bandung-based company plunged into financial crisis after
\nthe fall of president Soeharto in 1998; he had regarded the
\ntechnology sector as a matter of national pride.<\/p>\n
DI received an initial capital injection of Rp 1.6 trillion
\nwhen it was established in 1986. It faced such severe financial
\nproblems that its operational costs were borne by the state in
\nthe early 1990s.<\/p>\n
The post-Habibie administrations considered the company was
\nunhealthy and a financial burden on the state.<\/p>\n
The aircraft company produced what was supposed to be the
\ncountry's own aircraft, the CN-235 and N-250.<\/p>\n
In the wake of the layoff decision, the company was working on
\nseveral orders to build CN-235 planes for Malaysia's Royal Air
\nForce and for Pakistan.<\/p>\n
Meanwhile, IBRA chairman Syafruddin Temenggung said that the
\nCabinet decision to use the agency's money for the severance pay
\nof DI employees would reduce its contribution to the state
\nbudget.<\/p>\n
IBRA is targeted to raise around Rp 26 trillion in cash this
\nyear to help finance the state budget deficit.<\/p>\n
Syafruddin said that in return for IBRA money, DI would have
\nto surrender its core assets to the agency.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-decides-to-dismiss-di-workers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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