Telkom plans to lay off workers<\/p>\n
JAKARTA (JP): State-owned telephone operator PT Telekomunikasi
\nIndonesia (Telkom) is considering laying off some 3,000 to 4,000
\nworkers to improve efficiency and raise the company's value, a
\nsource has said.<\/p>\n
Antara newswires reported on Sunday that the dismissals, in
\nthe form of an early retirement program, would be targeted at
\nemployees in the lower levels.<\/p>\n
The early retirement program would start beginning next year,
\nthe source said, adding that the lay-off measure would not cost
\nTelkom as much as it had in 1995 when it dismissed about 6,000
\nworkers.<\/p>\n
Telkom employs more than 38,000 workers in seven divisional
\nregions across Indonesia.<\/p>\n
Telkom investor relations manager Setiawan Sulistyo confirmed
\nthat the company was looking into cutting manpower as part of its
\nprogram to boost business efficiency.<\/p>\n
\"At present it (layoffs) is just an idea. It has not been
\nconceptualized nor taken to the board meeting,\" he said, adding
\nthat the company hoped to implement the move by next year.<\/p>\n
Telkom is under pressure to increase its value in light of the
\ngovernment's plan to remove its exclusive rights in domestic
\ntelecommunications service in 2002.<\/p>\n
The move to let go of thousands of workers was not the first
\nto happen in the company's history.<\/p>\n
In 1995 the company, facing upcoming initial public offerings
\nin domestic as well as international capital markets, decided to
\nlet go of 6,000 of its staff.<\/p>\n
For that, the company allocated some Rp 300 billion, about 80
\ntimes an employee's salary, to compensate those wishing an early
\nretirement.<\/p>\n
Setyanto P. Santosa, who was Telkom's president, said then
\nthat the move was necessary for the company to get up to
\ninternational standards.<\/p>\n
The employees targeted in the early retirement program in 1995
\nwere those about 46 years of age and had been working with Telkom
\nfor 25 years. (tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-plans-to-lay-off-workers-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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