Covid-19 Forces KFC Indonesia to Cut, Suspend Wages

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Laila Afifa

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  • TEMPO.CO, Jakarta - PT Fast Food Indonesia, the license holder of KFC in the country, is adjusting employees' wages to cope with the financial challenges posed by Covid-19. The fried chicken franchise will cut wages and delay payments. 

    "For working company employees, there will be adjusted salaries during the period of Covid-19 pandemic," Fast Food Indonesia director Justinus Dalimin Juwono said in a statement to the Indonesia Stock Exchange (IDX) Tuesday, April 28. 

    For store workers, their wages are not cut, but a small part of it would be paid at a later date. 

    The adjustment is done by lowering and suspending wages with varying amounts, he said, the biggest cuts applied to senior management levels and up.  

    Justinus said the company will also adjust employees' Idul Fitri bonuses—also cutting and delaying. He added the firm will do its best to prevent cutting jobs. 

    The company and its workers' union agreed on this "pact" as a measure against the impacts of Covid-19. 

    The pandemic has so far closed 97 KFC restaurants in malls and shopping centers across Indonesia, which had to stop operating during a social distancing period.  

    Other outlets continue to operate without dine-in services. Customers can get their KFC orders by takeaway, home deliveries by phone, or online, as well as a drive-thru.

    ANTARA