Troubled factory will be renovated: Management
JAKARTA (JP): Executives of PT Sarkis Pacific Indonesia, whose factory in Tangerang was burnt down by angry employees on Tuesday, have planned to immediately renovate the plant and begin production again.
"We hope that the factory's renovation could be completed in 30 to 60 days, but it's subject to our financing bank," President Director Steve Jamkoujian told reporters here yesterday.
Located at a five-hectare site on Jl. Raya Mauk KM.6 at Desa Karet in Sepatan district, the factory, which produces sports sandals for the overseas market, was flamed and ravaged by almost all of its 2,400 workers due to the belated distribution of their bi-weekly wages, amounting to Rp 30,000 per worker.
According to Nurhadi Karis, the company's general affairs and personnel manager, one of three production units was totally burned, with the remaining two seriously damaged.
"One of the machines, which costs about Rp 2 billion, was also fractured," Nurhadi said.
Ready-to-export items at the plant were also destroyed by the workers, he said.
There were no fatalities reported. Jamkoujian estimated a total loss of billions of rupiah.
"The investigation of the mishap is still under investigation by the local police," said director George S. Wartanian.
In the meantime, all of the 2,400 workers were given temporary leaves, said Nurhadi.
It's unclear whether the company will provide compensation for the sudden temporary leaves, because the firm's executives and workers' representatives are still discussing the issue under the eyes of the local authorities.
The fire at the factory occurred around 1 p.m., just an hour late from the deadline set by the management for the payment distribution.
A factory security guard witnessed the angry mob rushing into the plant after smashing the windows. He saw the fire a few minutes later.
At least four fire engines went to the scene.
"If the workers had been willing to be a little patient, they would have gotten the money by 3 p.m.," said Wartanian.
Reports said that none of the company's executives were at the site to negotiate with the workers.
"We're in Jakarta, waiting for the money," Jamkoujian said.
A reliable source, who refused to be named, told The Jakarta Post yesterday that a employee at the factory identified as Jacky might be the one responsible for the incident after he failed to calm down the workers.
"He has not contacted us since the accident took place," Wartanian said.
According to Jamkoujian, the delayed wages, totaling Rp 51 million, represented only less than half of the workers bi-weekly wages, as a large portion had been paid a few days earlier.
He denied local media reports that the company had completely suspended the workers' bi-weekly wages.
The company on Thursday distributed the delayed salaries to its workers, Wartanian said.
PT Sarkis Pacific Indonesia, set up in 1990 with a capital investment of Rp 30 billion, is 95 percent owned by Jamkoujian, a Lebanese, and the remaining 5 percent by his local partner.
The unnamed source told the Post that the delay of wages had been going on since January, mainly due to the company's problem with its financing bank, BII.
When asked about the matter, Jamkoujian refused to comment, saying that the company's financing bank was "very much cooperative".
The source also said that at least 20 workers have been named as those who incited the workers to destroy the factory.
"We're planning to sue them if they're found guilty," said Nurhadi. (bsr)