Retired employees support PLN reorganization plans

The restructuring plans of the state-owned electricity company PLN including to cut down the number of staffs of PLN central office in Jakarta to around 300-400 from 3,000 is fully supported by the union of PLN ex-employees, the Neraca daily reported on Friday.

The paper quoted union chairman Januar Muin as saying that the reorganization was the right step and was needed to help improve efficiency.

PLN president Kuntoro Mangkusubroto has started the reorganization since last year. Most of the employees in Jakarta would be relocated to company units in various areas throughout the country.

Januar said that the move was also in line with the government decentralization and regional autonomy policy.

He explained that one of the objectives of the reorganization was to transfer most of the company's managerial and operational activity to PLN units outside Jakarta so that decision-making process could be made quickly and more efficient.

He said that there was a possibility that PLN regional units could be transformed into strategic business units of subsidiaries and the PLN office in Jakarta could become holding company. He added that the transfer of staffs from Jakarta would help improve the capability of human resources in PLN offices in other provinces and regencies.

Januar was convinced that the reorganization would not create unrest among PLN employees.

Kuntoro had recently said during a meeting with the parliament that under the reorganization plan, the PLN central office would only be responsible in designing company strategy.(*)