1,000 employees of PD Paar Jaya to be laid off
1,000 employees of PD Paar Jaya to be laid off
Bambang Nurbianto, The Jakarta Post, Jakarta
Employees of city-owned PD Pasar Jaya are facing a gloomy future
as the company has started a major plan to lay off 1,000 of its
3,000 employees.
PD Pasar Jaya president director Prabowo Soenirman said on
Thursday that the layoff was part of efforts to improve
efficiency in the company, which controls a total of 151
traditional markets in the city.
Speaking during a hearing with City Council Commission B for
economic affairs, Prabowo said that the large number of employees
was inefficient because 45 percent of the company's revenue was
spent on employees' salaries.
The layoff will be implemented gradually starting this month.
Around 200 employees will be in the first batch to be laid off.
PD Pasar Jaya will have to spend between Rp 5 billion
(US$581,395.4) and Rp 6 billion to compensate those who become
jobless.
"We anticipate that the process will be complete before 2004,"
said Prabowo, who replaced the former president director Sjahril
Tanjung last month.
He said those who were recruited based on nepotism would be
the first to be laid off.
PD Pasar Jaya has failed to contribute significantly to the
city budget although it controls 151 markets with total assets
worth over Rp 50 trillion.
This year, the company is targeted to contribute Rp 6 billion
to the city budget, far from last year's contribution of only Rp
1.4 billion.
Prabowo, pessimistic about the target, said that the company
only had some Rp 35 billion in its bank account but its bank
loans reached Rp 39 billion.
Some claim that the company is a cash cow for certain
officials and councillors.
A number of councillors are known to own several kiosks in the
city's markets such as in Tanah Abang market and Glodok market in
West Jakarta and Kenari market in Central Jakarta.
The kiosks are rented to businessmen and the rental fees have
been used for councillors' political party operational costs and
private use, all in violation of regulations on city-owned
businesses.
Prabowo emphasized that the vacant kiosks in a number of
markets also contributed to the inefficiency. Some 59 markets
built based on a presidential instruction during former president
Soeharto era were quiet due to their location.
He said that occupation rate in those markets was less than 50
percent.
"There are even markets with an occupancy rate of only 10
percent to 20 percent."
Commission B secretary Dani Anwar said that the legislators
supported the layoff but demanded the company provide adequate
compensation for employees who would be dismissed.
"We know that PD Pasar Jaya is not efficient. We hope that the
move will be able to improve its performance in the future," he
said.