The Jakarta Post, Jakarta | Tue, 02/16/2010 9:34 PM
State ship-building company PAL Indonesia has confirmed to cut 900 employees in March as part of its restructuring program from financial trouble.
State-owned Enterprise Minister Mustafa Abubakar said Tuesday that the company would reach its ideal employee number at 1,400 people compared to the current 2,300, as reported by kompas.com.
The redundant employees will receive a compensation fund from the company, he added. No further information on the amount of the compensation has been made available.
PAL has been in financial trouble since signing a contract to construct 20 vessels in 2006 at a flat price without taking US dollar fluctuations into consideration.
This deal later prompted currency loss for the company, causing the current financial problem.
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