Wednesday, July 04, 2007

Nine Thousand Bank Workers at Risk

Monday, 16 April, 2007 | 15:20 WIB

TEMPO Interactive, Jakarta: The All-Indonesia Organization of Workers (previously the Association of Financial Workers Union) has estimated that around 9,000 bank workers are threatened with being laid-off this year.

This means that there could be an 800 percent increase in the number of laid-off bank workers, compared to last year’s figure of 1,000 persons.

The firing is line with the issuance of Bank Indonesia policy on a single presence policy.

According to Yanuar Rizky, the President of the All-Indonesia Organization of Workers, the number of 9,000 persons was based on the calculation of operational costs and performance operational revenues of banks during 2006.

“With the coming into force of the policy, banks cannot help but, especially those owned by foreigners, have to reduce the number of workers,” Yanuar told Tempo on Saturday (04/14).

However, he said he considered that the single presence policy had been slightly delayed because many banks in Indonesia are owned by foreigners.

So that the lay-offs will mainly occur in private banks owned by foreigners.

“In particular those whose shares are owned by Singapore (Temasek),” said Yanuar.

Some private foreign banks operating in Indonesia and having the same owners include PT Bank Danamon and PT Bank Internasional Indonesia—owned by Temasek Holding, Singapore—and PT Bank Niaga and PT bank Lippo—owned by Khazanah Berhard, Malaysia.

According to Yanuar, of the private foreign banks, Bank Danamon is estimated as having to lay-off the most.

“Around 4,000 persons will be laid-off gradually. This already had started last year with 450 people,” he said.

“BII has also planned to reduce its workers by 3,000 people.”

Irawati Koswara, Corporate Secretary of Bank Danamon, denied that the bank will carry out lay-offs on such a large scale.

On the contrary, the company will recruit a large amount of workers.

Director of BII Sukatmo Padmosukarso has also denied the information that the company will lay-off thousands of its employees.

“We have no plans to reduce the number of our employees, especially not 3,000 people,” said Sukatmo.



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