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Intirub's pension benefits

| Source: JP

Intirub's pension benefits

I have worked with a tire producer, PT Intirub, in East
Jakarta, which is owned by the government (9.9 percent) and PT
Mega Safe Tyre Ind (of the Argo Pantes Group). Intirub's
employees are members of the employer's pension fund, with
contributions paid by both employees and the company.

In May 2003, Intirub rationalized and dismissed about 20
percent of its employees, including myself. In this case, the
board of executive directors decided to pay compensation pursuant
to Minister of Manpower Decree No.150/2000, article 27, paragraph
3, plus contributions of members of the pension fund.

I wish to obtain an explanation about the following matters
from the relevant authorities:
* How should Law No.13/2003 on manpower be observed? Can the
unilateral decision of Intirub's executive board be justified?
The company's argument is that Law No.13/2003 is not yet
effective before a relevant presidential decree is issued,
although the manpower minister has declared the law applicable.
* How should pension fund members' contributions be calculated?
As the president director of Intirub requested the dissolution of
the company's pension fund, if Law No.13/2003 were enforced,
would I be entitled to pension benefits or only member
contributions?

RR SUPRIHATIN
Jakarta

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