IBRA promises full compensation<\/p>\n
JAKARTA (JP): Around 12,000 employees who will lose their jobs
\nas a result of the closure of three badly managed banks will
\nreceive twice as much compensation as they are entitled to under
\nexisting labor regulations, the Indonesian Bank Restructuring
\nAgency (IBRA) announced yesterday.<\/p>\n
It said in a letter sent to all employees of Bank Dagang
\nNasional Indonesia (BDNI), Bank Umum Nasional (BUN) and Bank
\nModern that the banks would pay them compensation in accordance
\nwith Ministry of Manpower regulations.<\/p>\n
IBRA would then ask the owners of the three banks to match the
\ncompensation paid to employees by the banks.<\/p>\n
\"In fact, the terms offered to the employees are substantially
\nbetter than the minimum specified in the regulations,\" IBRA said
\nin a statement.<\/p>\n
It said the compensation package was intended to ensure the
\nneeds of individual employees were met while at the same time not
\nplacing too great a burden on the taxpayer.<\/p>\n
In addition to the compensation, all employees of the frozen
\nbanks will get their salaries for August and September, IBRA
\nsaid.<\/p>\n
IBRA called on the employees who had just lost their jobs and
\nother people in the banking industry to \"step back and look at
\nthe bigger picture.\"<\/p>\n
It said suspending the operations of troubled banks would lead
\nto recovery in the banking industry.<\/p>\n
Despite the closures, IBRA said employment opportunities would
\nbe found in the sector once better managed banks began to benefit
\nfrom a \"flight to quality\" deposit move and expanded their
\noperations.<\/p>\n
It cited state Bank Negara Indonesia (BNI) and privately-owned
\nBank Bali and Bank Lippo as examples.<\/p>\n
It quoted BNI president Widigdo Sukarman as saying the bank
\nneeded to recruit new personnel capable of offering a high level
\nof service as more and more new accounts were opened.<\/p>\n
\"We are also looking closely at plans to open new outlets,\"
\nWidigdo added.<\/p>\n
IBRA cited Bank Bali president Rudy Ramli as saying that it
\ntoo needed more staff to support a planned expansion, and Bank
\nLippo president Eddy Sindoro, who recently said: \"We have been
\nreviewing our resources, our existing network will need to be
\nstrengthened and service levels raised to meet the upswing in
\ndemand.\" (rid)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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