American Express explains

In response to the letter titled American Express inconsistent in The Jakarta Post on Sept. 18, 1999, on behalf of American Express I would like to clarify the matter so it remains factual.

* The restructuring of our Travel Related Services (TRS) business was necessitated by the downturn in the cards and travel industry in Indonesia over the last two years.

* The restructuring was done after due deliberations over a long period with a view to making the business productive and tailored to the requirements of our customers. During the process, what was uppermost in our minds was to keep the process fair, caring and equitable to all employees.

* As we have put forth and by the decision of the Legal Counsel for Labor Disputes (P4P) committee of the Ministry of Manpower, the end package formulated is substantially above the required government regulations, integrating tenure, years of service and other benefits. Over and above the package, we have made an ex-gratia payment and also hired one of the best available consultant services for our ex-employees who would like to seek future development.

American Express TRS remains committed to Indonesia and, in order to move the businesses forward, will do many exciting, attractive and prudent marketing programs. This thrust toward business development will naturally be supported by regular training and motivational programs for our employees conducted both in on and off site locations. These are investments we must make in our business to continuously bring to market new products and services for our customers.

As we move forward, our efforts are to ensure that American Express TRS further strengthens its business presence in Indonesia and reinforces its position as an efficient provider of high quality products and services in this country.

WINNY SUNDARU

Public Affairs

and Communications Manager

American Express

Jakarta