Salary payments remain uncertain for PPD employees

JAKARTA (JP): Some 5,600 employees of state bus company PPD remain uncertain of whether they will receive their salaries for February as the company management has claimed a shortfall of Rp 2.3 billion (about US$242,105) to pay the wages.

The company's spokesman, Suryadi, told The Jakarta Post over the weekend a government subsidy was expected to cover the arrears, despite the government decision to stop its regular financial aid beginning this month.

"We have urged the government to take an immediate decision, because the salaries must reach the employees by Feb. 28, otherwise they won't receive their wages this month," Suryadi said.

The government last disbursed Rp 6 billion in subsidy for December 2000 and January 2001 to the debt-ridden company, according to Suryadi.

Government subsidy has given PPD a lifeline as the company monthly expenditure reaches Rp 8.3 billion, while it manages only to raise Rp 6 billion in revenue.

Suryadi said that after the government subsidy had stopped the company had made efforts to survive, among others, by increasing the daily rental fees starting in January and selling some of its assets.

Currently, each driver must submit an average daily rental fee of Rp 480,000 for regular buses and Rp 650,000 for air- conditioned buses per day.

The company serves commuters in Jakarta and surrounding areas with 265 regular and express buses and 189 air-conditioned buses, servicing 67 routes across the capital. In addition, it has 486 unusable buses currently parked in its 16 bus compounds.

In order to boost cash for more revenue, the company has also offered its assets for sale, 1.2 hectares of bus compound in Kalideres and another 3 hectares in Jelambar, both in West Jakarta.

"We have not succeeded in inviting investors to buy the bus compounds and their facilities such as workshops," said Suryadi.

He said the oversized workforce and growing number of aging vehicles have been undermining the company's financial performance, which has resulted in huge and seemingly endless debts.

"We have tried to gradually reduce our workforce and planned to purchase new vehicles, but it this is insufficient to help us to survive," said Suryadi.

The company, he added, partnered a private company, PT Sena Wangi, in a joint operation which began in 1994, but the firm broke its contract in 1998 due to a continuing deficit.

"Currently, we are looking for private counterparts which can provide a management system and financial support for our company," said Suryadi.

When asked about the possibility of the company being merged with another state-owned bus company Damri, Suryadi said he supported the suggestion, hoping that the merger would increase the company's performance.

"We are glad to hear Damri president director Darius Djana said he would take over PPD as it is," he said, adding that the final decision would depend on the government.

Darius was a former top executive of PPD.

Suryadi hinted, however, the merger would find difficulties in adjusting the different operational methods of the two companies. Unlike PPD, Damri also plies intercity routes.

According to the 1999 data, Damri owns 669 buses operating in the capital, 265 buses for intercity routes, 41 buses for tourism, 64 buses for airport commuters and 18 buses for cargo delivery.

Suryadi added PPD would have to increase its bus fleet to compensate its current huge workforce, in a bid to ease the problems which might burden the merger.

Currently, each bus is operated by at least 10 employees, while five people are considered sufficient for the job. (07)