Saturday, 14 December 2019

PLN Employees to Endure Pay Cut due to Java Blackout



Laila Afifa

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  • TEMPO.CO, Jakarta - State-owned electricity firm PLN director of the strategic procurement 2, Djoko Rahardjo Abumanan, announced that the company will likely cut the salary of its employees following the Java power outage crisis on Sunday, August 4.

    The massive blackout affected entire areas in Jakarta, West Java, and Banten, which eventually cost 21.9 million customers a hefty Rp839 billion loss following the power outage that lasted for hours.

    “We shall be even frugal in the future costs, which will see employees pay cut,” said Djoko in the Parliamentary Complex in Jakarta on Tuesday, August 6. However, he is yet to disclose the details of the salary cut.

    This is considered necessary by company higher-ups as the compensation for its customers must not use the company’s operational costs, nor could they use the state capital inclusion or state budget that can only exclusively be used of investments.

    Moreover, the employee salary cut is taken due to the merit order system the company adopts, which means employees who are lacking in performance will endure a pay cut.

    “It’s actually not a pay cut, but accounting the P2. The P1 is their salary while the P2 is rewards given for positive performances, [the P2 will not be rewarded if there is nothing to be rewarded],” said Djoko who hinted that this decision might affect PLN employees for the next semester.