Indonesian Political, Business & Finance News

Former PT SAK Employees Demand Unpaid Salaries and Severance; Company Promises Instalments

| Source: DETIK_JOGJA Translated from Indonesian | Social Policy
Former PT SAK Employees Demand Unpaid Salaries and Severance; Company Promises Instalments
Image: DETIK_JOGJA

Dozens of former employees of PT Selo Adikarto (SAK) are demanding payment of outstanding salaries and severance benefits that the company has failed to pay. The company has promised to provide a portion of the employees’ entitlements before Eid with payment arranged in instalments.

The demand was made when the former workers visited the Kulon Progo District Prosecutor’s Office (Kejari) to seek a resolution. Waljito, Head of the Advocacy Division of the DPD KSPSI DIY, stated that his organisation was supporting the former employees to fight for their unfulfilled rights.

According to him, the payment of outstanding salaries and severance had actually been agreed upon previously.

“Today we are supporting our colleagues from PT SAK to fight for their rights regarding outstanding salaries and severance due to dismissal. Previously there was a bipartite agreement that stipulated the outstanding salaries and severance would be paid,” said Waljito when met by reporters during the action on Friday, 13 March 2026.

Waljito noted that during the action, representatives of the protesters were then met by prosecutors. In that limited meeting, the Deputy Regent of Kulon Progo, Ambar Purwoko, also attended along with relevant officials. Additionally, PT SAK Commissioner Muhadi was present.

They ultimately formulated a plan to pay salaries and severance to the dozens of dismissed employees through an instalment mechanism.

“Because to this day there has been no decision, we came to the prosecutor’s office and, praise be to God, the Deputy Regent came representing the Regency and several department heads ultimately formulated a plan for instalment payments,” he said.

He explained that this instalment scheme is expected to help the former employees, particularly given that Eid al-Fitr is approaching. The payment process is being conducted before Eid.

“Because this is approaching Eid, in order to show respect, the company’s board of directors will endeavour to make instalment payments. Later they will endeavour to do so, so a bit can be used for Eid needs,” he said.

Waljito revealed that despite the agreement on payment of outstanding wages, this has not satisfied the former employees.

“If it were a matter of satisfaction or dissatisfaction, we would certainly not be satisfied. However, with open hearts we can accept this process. But in future, the consequences related to the resolution must be completed quickly,” he asserted.

Therefore, after Eid, his organisation will return to demanding the outstanding salaries that the company has not yet paid.

“After Eid we will push back for a marathon process of resolving the outstanding salaries. The formula earlier was that we can sell certain assets, we can do this and so on. Because from the prosecutor’s office when we clarified, they did not object,” he said.

Company Promises Instalments

Meanwhile, PT SAK Commissioner Muhadi pledged to disburse the debt of salaries and severance to employees. However, the company is only able to do so through an instalment scheme.

“Earlier I presented my concept which is instalments; the company is paying instalments on a portion of PT SAK’s entitlements,” Muhadi told reporters at the Kulon Progo Prosecutor’s Office.

He stated that meanwhile the company is only able to disburse Rp 1 million per person for 52 employees.

“Earlier I committed Rp 1 million per person. There are 52 employees. Of course later the authority (distribution) through the workers’ association will be divided evenly or proportionally,” he said.

Muhadi stated that to meet the demand, he would immediately proceed with selling company assets. However, according to company authority, only inventory assets can be sold immediately without auction mechanisms and shareholders’ general meetings (RUPS).

“Meanwhile, what we can commit is the potential of inventory assets first, then speaking about other matters is beyond my authority. The forms are two: split and stone blondos,” he said.

He acknowledged that the sale of inventory assets would not be sufficient to pay all the salary debt to employees.

“It is not the full entitlement; once again, it is a portion that we count as an instalment of PT SAK’s obligations. Because this must be disbursed before Eid al-Fitr,” he concluded.

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