Thu, 08 Dec 1994

Boss tried for not insuring workers

SEMARANG, Central Java: The director of PT Sari Busana Indah Tekstil is standing trial for failing to insure his textile workers as required by law.

Prosecutor Bambang Supriyadi said in a court session yesterday that the 53 year-old director, whose identity is not being revealed, failed to abide by the law although he was aware that insuring workers was mandatory.

The law requires that any company employing more than 10 workers or spending more than Rp 1 million (US$480,000) a month on workers' pay should insure its employees.

PT Sari Busana Indah Tekstil employs more than 200 people and only some of them have been insured, Antara reported, quoting witnesses in the trial.

The director of the company established in 1992, the year when the insurance law was passed, is facing six months imprisonment and a fine of Rp 50 million. (pan)