IPTN begins 1st phase of cutting workforce<\/p>\n
By M.M.I. Ahyani<\/p>\n
BANDUNG (JP): Financially strapped PT IPTN, the state-owned
\naircraft manufacturer, has offered its aging and low-skilled
\nemployees lucrative cash incentives to retire early in its bid to
\nstreamline its workforce from 15,750 to 10,500 by 2001.<\/p>\n
In the first phase, the early retirement scheme is being
\nrestricted to those with a primary school education, those with a
\njunior high school education aged over 45 years and employees of
\nany educational background who are 53 years or older.<\/p>\n
The next phase, for workers with a senior high school
\neducation, is expected to be announced in March.<\/p>\n
The early retirement offer has become the main topic of
\ndiscussion among workers at the plant, which due to depleting
\norders scaled down its operation to four days a week five months
\nago.<\/p>\n
One estimate put total individual severance pay at between Rp
\n19 million and Rp 50 million, depending on the grade and length
\nof service.<\/p>\n
\"Obviously, management hopes that the severance pay will be
\nused as start-up capital, or at least invested in a bank deposit
\nto allow them decent earnings,\" IPTN public relations chief M.
\nTjahjojo Satoto told reporters on Monday.<\/p>\n
Satoto said many employees had asked for the application forms
\nto take up the offer.<\/p>\n
He said those who qualified for the scheme included 411
\nemployees with primary school education, 233 employees above 45
\nyears old with junior high school education and another 115
\nemployees who are over 53 years old.<\/p>\n
\"Obviously, not all of them will want to take advantage of the
\noffer. And not everyone who applies will be accepted,\" he said.<\/p>\n
One employee who is looking forward to the next phase is 52-
\nyear-old Cece Hidayat from the fabrication section.<\/p>\n
A graduate of a technical senior high school and with 17 years
\ndedication to IPTN, Cece said the cash incentives were very
\ntempting.<\/p>\n
\"Using the formula, I stand to receive Rp 30 million, and
\nanother Rp 4 million from Jamsostek if I apply,\" he said,
\nreferring the state-run social security insurance company.<\/p>\n
That sum, if put in a time deposit, would earn interest that
\nwould cover some of his family's expenses. The remaining expenses
\nwould have to be covered by whatever job he might get after
\nretiring from IPTN.<\/p>\n
Cece, a father of five, earns Rp 650,000 a month, comprising
\nRp 355,000 in basic salary, Rp 155,000 in performance-related
\nincentives and another Rp 140,000 in allowances.<\/p>\n
Satoto declined to give estimates of the total cost to IPTN in
\nterms of severance pay in cutting its workforce.<\/p>\n
\"Where is the money coming from? Partly from retained earnings
\nand partly from the proceeds of sales of assets no longer
\nconsidered productive or effective,\" he said.<\/p>\n
He did not rule out, when asked by reporters, that among
\nassets to be disposed of would be the Gulfstream G-4 corporate
\nplane which Habibie often used when he was the company's
\npresident.<\/p>\n
\"It's possible. I don't really know,\" he said.<\/p>\n
IPTN, the brainchild of Habibie who served as corporate
\npresident until March, has been deprived of further government
\nfinancial support since last year at the behest of the
\nInternational Monetary Fund (IMF).<\/p>\n
Existing planes<\/p>\n
Since the government stopped funding IPTN, the company has had
\nto concentrate its work on its two existing planes, the CN-235
\nand the N-250. The company will complete the preliminary design
\nof its first jet, the N-2130 project, but what happens after that
\nis anybody's guess, Satoto said.<\/p>\n
PT DSTP, the company established in 1996 by then president
\nSoeharto to raise the $2 billion funds from the public needed to
\ndevelop the N-2130, stopped supporting the jet program last year.<\/p>\n
Currently, IPTN is working to complete 15 CN-235s: six for the
\nMalaysian armed forces, six for South Korea, two for Thailand and
\none for Brunei.<\/p>\n
The two prototypes of the N-250, the first plane wholly
\ndesigned by Indonesians, are currently undergoing certification
\nprocess from the Indonesian Certification and Airworthiness
\nOffice, the Joint Airworthiness Authority in Europe and the
\nUnited States' Federal Aviation Authority.<\/p>\n
Satoto also confirmed rumors of impending changes at IPTN's
\nmanagement as part of the ongoing corporate streamlining. \"We'll
\nprobably cut the number of directors from 10 to five,\" he said.<\/p>\n
Five names have been mentioned as candidates to replace IPTN
\npresident Hari Laksono. They are Cacuk Sudarijanto (a director
\ngeneral at the Ministry of Cooperatives and Small Enterprises),
\nSetyanto P. Sentosa (former PT Telkom president), Arsyad Ismael
\n(PT Inti president) and Bambang Wahyudi (technical director of PT
\nGaruda Indonesia).<\/p>",
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