American Express explains

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