Krakatau Steel cuts jobs

JAKARTA (JP): State-owned PT Krakatau Steel in Cilegon, West Java, has received early retirement applications from 125 of its 530 laid-off employees.

The company's president, Soetoro Mangoensoewargo, said the 125 employees had been discharged in May and had been offered an early retirement package which guarantees special compensations and bonuses.

"A reduction in employment is being made within the restructuring of the company," Ayup Sayrifudin, the company's public relations manager, said as quoted by Antara news agency, on Wednesday.

Under its restructuring program, Krakatau Steel plans to reduce the number of its employees from 9,000 to 6,000. (04)