Fri, 06 Oct 2000

PPD boss resigns over employees' pension fund

JAKARTA (JP): President of the city-run PPD bus company Anton Sudarto announced his resignation from the post on Thursday following his failure to obtain a Rp 13 billion (US$1.49 million) unpaid insurance and pension fund allocation for the firm's 5,500 employees from the central government.

Anton explained that he decided to resign at his own behest to fulfil the promise he gave to PPD employees several weeks ago, when he vowed to leave the firm if the employees did not get their money by Sept. 29.

The money is part of this year's budgeted Rp 105 billion government subsidy for the PPD employees' insurance and pension fund, which is supposed to be distributed by the Ministry of Finance to the employees every three months.

"This is an expression of my moral commitment and to show to all PPD employees that I have been conscientiously trying to get the money for them but failed.

So, I have to keep my word and resign from the post," Anton told The Jakarta Post on Thursday.

The last time the bus company, the oldest in the city, distributed the fund to its employees was in April.

"I know that by resigning I have not solved any problems as the employees have yet to receive their money, but this is my way of proving my seriousness and of meeting the demands of my employees," Anton said.

He admitted that one of the reasons for the ministry refusing to meet his request was the fact that the PPD management had spent some Rp 6 billion from the previous fund allocation to pay PPD debts and fund its internal rationalization program.

He contended that the management had to use the money as the ministry had failed to pay out PPD's subsidy.

"None of the Rp 6 billion fund was embezzled or misused," Anton said.

He disclosed that his resignation letter had been submitted to the Minister of Transportation and Communications Agum Gumelar on Thursday and the Director General of Land Transportation Susmono Soesilo a day earlier.

"Both of them have accepted my resignation. I also had a farewell meeting with all of the bus depot chiefs today," Anton said.

The demand by PPD employees for the money led to at least two demonstrations and work stoppages last month. The most recent took place on Sept. 13, when hundreds of PPD bus drivers went on a half-day strike.

The employees have also asked the company to reconsider the work period for the giving of bonuses to drivers.

Separately, City Land Transportation Agency chief Buyung Atang said that the dispute is an internal matter for PPD, and that the new board of management should consider better ways of improving the company's management.

"I have heard that they want better management in the company and to buy new buses to improve their service. I hope the resignation will not hamper their plans," Buyung said.(dja)