Reorganization of PLN creates uneasiness among employees

Friday, January 12 2001 - 04:00 AM WIB

The employees of state electricity firm PLN, represented by its labor union, expressed concerns over the reorganization of the company's structural positions, arguing that it would only worsen the company's problems.

PLN labor union chairman Hasrin Hutabarat said that the abolishment of the position of division heads under directors and the replacement of such position with vice presidents would not solve PLN's mounting problems, but only create uneasiness among employees having structural positions.

"The new decrees (signed by PLN president Kuntoro Mangkusubroto) abolish all division heads and replace them with vice presidents. This caused a number of executives to feel unsettled because their responsibility become blurred, the strategy and direction of PLN business become unclear, and the organization becomes vacuum," Hasrin said.

The two PLN president decrees are those No. 287. K/010/DIR/2000 and No. 290 I.K/010/DIR/ 2000 dated Dec. 4, 2000. The latter decree replaced PLN president decree No. 010.K/ 023/DIR/1995 on PLN organization and working mechanism.

Under the new decrees, positions of all division heads were abolished and their positions were replaced by vice presidents who are accountable directly to directors. The number of directors under the new decrees remain the same, but the new decrees name 11 vice presidents.

PLN has directors of planning, operation, marketing and distribution, finance, human resources and organization.

Meanwhile, the positions of vice presidents include vice presidents for planning, company restructuring, business development, quality and environment, tariffs and business, company performance, legal, information technology, communications and community development, special contract rationalization and procurement.

Hasrin contended that the 1995 decree on PLN organization was still good enough to run the company and therefore, it should not be replaced by a new decree.

He said the issuance of the new decree was not yet followed by the appointment of vice presidents, making division heads in a state of confusion, as to what to do with their positions. "People are wondering about what their status and division of works are like."

Hasrin also slammed Kuntoro for his "silence" and demanded the government to replace Kuntoro and other PLN directors to solve PLN problems, namely its bad finance, mounting debts, and private electricity problems. (*)

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