Sat, 08 Jan 2005

PTDI president faces trial

BANDUNG, West Java: Edwin Soedarmo, president director of ailing state-owned aircraft maker PT Dirgantara Indonesia (PTDI), will go on trial on Friday for failing to pay compensation to more than 6,500 dismissed employees in early 2004.

The compensation amounts to Rp 400 billion (US$43 million).

Head of Bandung manpower office Nana Supriatna disclosed on Thursday that Edwin also had not paid employees' salaries from October through December 2003.

Nana added that the employees also did not receive remunerations for housing, retirement, and health as well as corporate bonus.

According to Nana, Edwin had evaded twice the summons of the manpower office's civil servants investigator, which needed the help of police officers to force him to appear before the investigators.

The Bandung-based PT Dirgantara had to downsize its employees for efficiency reasons to help avoid bankruptcy. -JP