1,300 hotel workers to lose jobs

Bambang Nurbianto, The Jakarta Post, Jakarta

State-owned Hotel Indonesia and Inna Wisata Hotel in Central Jakarta have stopped accepting reservations since Thursday and will completely close down on April 30 as new management pursues a major overhaul of the hotels.

The new management, PT Cipta Karya Bumi Indah (CKBI), a subsidiary of cigarette giant Djarum, will take over the hotels from PT Hotel Indonesia Natour. As a result of this transfer, the two hotels' 1,300 employees will lose their jobs.

PT Hotel Indonesia Natour president director A.M. Suseto said the dismissal of the workers was related to the build-operate- transfer agreement signed by the government and CKBI in mid- February.

"We cannot employ them because the management of the hotels will be taken over by the new investor," he said.

With the closure of the hotels nearing, workers are upset over their impending dismissal and hope to be given back their jobs after the renovation work is completed.

"I have been working here for 11 years. I'm 28 and it's not easy to find the same job out there at my age," said a Hotel Indonesia food and beverage employee.

Hotel Indonesia Workers Union head Sahrul Sidiq said that according to the union's calculations, each worker should receive between Rp 17 million (US$1,977) and Rp 75 million in severance pay.

Suseto, however, said the management was only willing to offer much lower severance pay packages that were more in line with Article 163 of Law No. 13/2003 on manpower.

"We can't accept (management's) offer because most workers have worked in the hotels for more than 10 years," Sahrul said, adding that because the hotels were still turning a profit, workers should receive larger severance packages.

Suseto confirmed the two hotels combined for a Rp 2 billion profit last year.

PT CKBI will invest Rp 1.3 trillion in the Hotel Indonesia renovation and the construction of a supermall on the site where the Inna Wisata Hotel now stands.

Suseto said the CKBI planned to return Hotel Indonesia's Bali wing and canopy to their original design when they were officially opened in 1962. He also said the size of the hotel would be reduced from 600 rooms to 300 suites only.

The construction of the supermall will begin in June and is expected to be completed in 15 months.

Suseto could not say when renovation work on Hotel Indonesia would begin as they are still awaiting the necessary permits.

Hotel Indonesia was built during founding president Sukarno's rule to host participants of the fourth Asian Games in 1962. The hotel was the first high-rise building in the capital and is listed as a protected heritage site.

Any renovation work on heritage sites requires a permit from the Jakarta Cultural and Museum Agency.