Salary payments remain uncertain for PPD employees<\/p>\n
JAKARTA (JP): Some 5,600 employees of state bus company PPD
\nremain uncertain of whether they will receive their salaries for
\nFebruary as the company management has claimed a shortfall of Rp
\n2.3 billion (about US$242,105) to pay the wages.<\/p>\n
The company's spokesman, Suryadi, told The Jakarta Post over
\nthe weekend a government subsidy was expected to cover the
\narrears, despite the government decision to stop its regular
\nfinancial aid beginning this month.<\/p>\n
\"We have urged the government to take an immediate decision,
\nbecause the salaries must reach the employees by Feb. 28,
\notherwise they won't receive their wages this month,\" Suryadi
\nsaid.<\/p>\n
The government last disbursed Rp 6 billion in subsidy for
\nDecember 2000 and January 2001 to the debt-ridden company,
\naccording to Suryadi.<\/p>\n
Government subsidy has given PPD a lifeline as the company
\nmonthly expenditure reaches Rp 8.3 billion, while it manages only
\nto raise Rp 6 billion in revenue.<\/p>\n
Suryadi said that after the government subsidy had stopped the
\ncompany had made efforts to survive, among others, by increasing
\nthe daily rental fees starting in January and selling some of its
\nassets.<\/p>\n
Currently, each driver must submit an average daily rental fee
\nof Rp 480,000 for regular buses and Rp 650,000 for air-
\nconditioned buses per day.<\/p>\n
The company serves commuters in Jakarta and surrounding areas
\nwith 265 regular and express buses and 189 air-conditioned buses,
\nservicing 67 routes across the capital. In addition, it has 486
\nunusable buses currently parked in its 16 bus compounds.<\/p>\n
In order to boost cash for more revenue, the company has also
\noffered its assets for sale, 1.2 hectares of bus compound in
\nKalideres and another 3 hectares in Jelambar, both in West
\nJakarta.<\/p>\n
\"We have not succeeded in inviting investors to buy the bus
\ncompounds and their facilities such as workshops,\" said Suryadi.<\/p>\n
He said the oversized workforce and growing number of aging
\nvehicles have been undermining the company's financial
\nperformance, which has resulted in huge and seemingly endless
\ndebts.<\/p>\n
\"We have tried to gradually reduce our workforce and planned
\nto purchase new vehicles, but it this is insufficient to help us
\nto survive,\" said Suryadi.<\/p>\n
The company, he added, partnered a private company, PT Sena
\nWangi, in a joint operation which began in 1994, but the firm
\nbroke its contract in 1998 due to a continuing deficit.<\/p>\n
\"Currently, we are looking for private counterparts which can
\nprovide a management system and financial support for our
\ncompany,\" said Suryadi.<\/p>\n
When asked about the possibility of the company being merged with
\nanother state-owned bus company Damri, Suryadi said he supported
\nthe suggestion, hoping that the merger would increase the
\ncompany's performance.<\/p>\n
\"We are glad to hear Damri president director Darius Djana
\nsaid he would take over PPD as it is,\" he said, adding that the
\nfinal decision would depend on the government.<\/p>\n
Darius was a former top executive of PPD.<\/p>\n
Suryadi hinted, however, the merger would find difficulties in
\nadjusting the different operational methods of the two companies.
\nUnlike PPD, Damri also plies intercity routes.<\/p>\n
According to the 1999 data, Damri owns 669 buses operating in
\nthe capital, 265 buses for intercity routes, 41 buses for
\ntourism, 64 buses for airport commuters and 18 buses for cargo
\ndelivery.<\/p>\n
Suryadi added PPD would have to increase its bus fleet to
\ncompensate its current huge workforce, in a bid to ease the
\nproblems which might burden the merger.<\/p>\n
Currently, each bus is operated by at least 10 employees,
\nwhile five people are considered sufficient for the job. (07)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/salary-payments-remain-uncertain-for-ppd-employees-1447893297",
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