PT DI employees go on strike, production halted

Yuli Tri Suwarni, The Jakarta Post, Bandung

More than 9,000 workers of the only state-owned aircraft firm, PT Dirgantara Indonesia (PT DI), went on strike on Tuesday, protesting the management's sluggishness in eradicating corruption, collusion and nepotistic practices in the company.

The employees' action coincided with the arrival of Minister of Defense Matori Abdul Jalil, who witnessed the handover of two BO-105 helicopters from PT DI to the Indonesian Navy, represented by Navy Chief of Staff Adm. Indroko Sastrowiyono.

All activities were halted for hours at the company, founded by former president B.J. Habibie.

The workers coordinated by the Employees' Communication Forum, demanded that the management make real and concrete steps to fight corruption.

Last June, employees went on strike demanding a better salary, more allowances and the eradication of corruption, collusion and nepotistic practices in the company.

During the two-day strike, the employees also asked the company to return a total of Rp 35 billion to them. They said the money, collected from their monthly salaries, had been used to finance the activities of the company's housewives' organization.

The employees also accused the company of being incompetent as it had suffered some Rp 200 billion in losses last year.

The management agreed to meet the demands of the employees and make several administrative steps.

The company's marketing director, Ilham Habibie, the eldest son of BJ Habibie, resigned.

"That's not enough. We are not satisfied with the management's actions. The management has frozen several corruption cases," said Arif, citing the Rp 2.5 billion insurance money that had affected PT Indonesia North America, a U.S. subsidiary of PT Dirgantara Indonesia.

"The company has done little to improve its financial efficiency, as the mark ups involved in purchasing aircraft parts had yet to be dealt with properly."

"The purchase of landing lights was irrational. Each landing light actually costs US$3,162, but the company bought them for $9,100 each. The markup was more than 200 percent," said Arif.

The management was reluctant to respond to the demonstration held by employees.

Arif said that the employees would march to the House of Representatives (DPR) in Jakarta on Wednesday to convey their demands.

"Around 5,000 employees will take part. We will travel there in at least 80 buses."