Bukit Asam to begin laying off employees

Bukit Asam to begin laying off employees

A'an Suryana, The Jakarta Post, Jakarta

Publicly listed coal mining company PT Tambang Batubara Bukit
Asam Tbk will gradually lay off a total of 364 employees
beginning later this year, as its Ombilin coal mine operation in
West Sumatra would be shut down in 2005, a company top official
said.

Bukit Asam president Ismeth Harmaini told reporters on Monday
that the company would provide a handsome Rp 30 billion (US$3.37
million) in total compensation for the employees.

"The layoff is unavoidable, due to the closure of the
(Ombilin) coal site," he told reporters following a meeting with
the House of Representatives Commission VIII on mining and
energy.

He said that the layoff program was expected to be completed
in 2004.

Bukit Asam is closing down the Ombilin operation as coal
reserves in the area has been depleted.

The company, which also controls a huge coal mining site in
South Sumatra's Tanjung Enim area, will start a reclamation
program at the Ombilin site later this year.

Currently, the company has 4,086 employees posted throughout
several mining sites in South and West Sumatra, including Tanjung
Enim, Ombilin and Banjarsari.

Several Commission VIII legislators, however, expressed
concern over the planned layoff, as it could potentially create
social unrest in the areas, particularly with the upcoming 2004
general elections.

Legislators urged Bukit Asam to try to transfer as many
workers as possible from the Ombilin site to other coal mining
sites.

The government controls 83.74 percent of Bukit Asam, while the
remaining shares are held by public investors.

The company sold 9.57 million tons of coal last year, posting
a net profit of Rp 177.95 billion.