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