Jamsostek clarifies

Jamsostek clarifies

In response to the letter from Ham Hus of Bandar Lampung,
published in The Jakarta Post, of June 2, 2003 titled Corruption
case at PT Jamsostek, we would like to clarify as follows:

* While thanking Ham Hus for his attention to PT Jamsostek, we
regret that his statement about graft involving Rp 23 billion is
not correct. It would be wiser if Hum did not judge other people.

* As for the settlement of the case involving the land on Jl.
Jend. Gatot Subroto Jakarta, where the Jamsostek Tower building
now stands, we have opted for the legal course at the South
Jakarta District Court and have paid Rp 18.5 billion for an
amicable settlement under the following considerations:

- Payment is made with the approval of the company's supervisory
board.

- Approval has also been given by the shareholders/Minister for
State-Owned Enterprises.

- If an amicable settlement had not been sought, there would be a
demand to pay a higher amount (Rp 182.7 billion) or a possibility
that the building and the land would be lost.
- A protracted court case would take a long time (two years or
more, which would mean a loss of Rp 124 billion as two years'
rent).
- If a legal dispute continued, there would be no prospective
tenants as every tenant would require a statement that the place

is not being disputed.
* A statement indicating corruption by the board of directors of
PT Jamsostek is therefore not correct.

* If Ham Hus is interested to see the evidence of what we have
explained above, the management of PT Jamsostek will be very
happy to be of assistance.

H. D. SUYONO, Head of Public Relations Bureau, PT Jamsostek,
Jakarta