1,300 hotel workers to lose jobs

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.