PT Servcorp clarifies

PT Servcorp clarifies

I am writing in response to a letter titled Ex-employees
seeking justice published on Sept. 2, 1998 regarding PT Servcorp
Indonesia.

There are a number of issues that require clarification. They
are:

PT. Servcorp Indonesia is a wholly owned subsidiary of the
Dharmala Group, a local company, which operates as a franchise in
Indonesia. The company is not an Australian-owned operation as
quoted in the letter.

All Ministry of Manpower regulations are strictly adhered to
and these have been regularly inspected and approved by several
manpower officers over the last two years. This included a
thorough audit conducted by a government task force comprising
senior officers of the Ministry of Manpower, immigration and
police departments. PT. Servcorp Indonesia's president director
is Mr. Thomas Kustianto, an Indonesian national. Each team member
is provided with a manual specifically written for each position
upon commencement with the company. These manuals detail all
aspects of their respective positions.

In reference to the two employees referred to in the letter we
advise as follows:

The employee who the author of the letter claimed was
dismissed during her maternity leave resigned after being
questioned by management as to why she allowed an employee of a
competitor's operation to continually peruse the company's
incoming mail. It should be noted that this employee was not
eligible for maternity leave, however the company paid her in
full along with her medical costs, despite this breach of company
regulations and confidentiality.

The second employee, who is the writer of the letter, was
retrenched as a result of the current economic conditions in
Jakarta. In times of recession, when many companies are forced to
streamline their operations, it is natural that employees with
outstanding performance will be retained over those whose quality
of work is substandard. Unfortunately, the writer of the letter
found this impossible to accept. Prior to any action being taken,
full application was made to the Ministry of Manpower.

Interestingly we have received a number of phone calls
following the publishing of this letter from other former
employees offering support and a willingness to be quoted in
relation to the inaccurate allegations levied.

PT. Servcorp Indonesia continues to employ 20 Indonesian staff
members and supports this business as it loses money, thus
protecting our current team.

We believe that should we decide to take legal action for
libel we would be successful. However, we prefer to concentrate
our efforts on providing the best service for our clients and job
security for our people.

Many companies with international links have left Indonesia.
We continue to provide training at great cost and if more
companies were as dedicated to continuing their business in
Indonesia the return to prosperity would be escalated.

FERELITH OTWAY

PT Servcorp Indonesia

Jakarta