BTN Acquisition Can Cause Massive Layoffs: Legislator

Jakarta, April 24 (Antara) - The planned acquisition of state-owned saving bank BTN by fellow state lender Bank Mandiri has the potential to create massive layoffs, a legislator said. "There are thousands of BTN employees across the country who are facing layoffs if the acquisition plan is implemented. This of course contradicts the policy of President Susilo Bambang Yudhoyono who fights to cut unemployment rate," Poempida Hidayatullah, a member of the House of Representatives (DPR)`s Commission IX on manpower affairs said here on Wednesday. He therefore reminded State-Owned Enterprises (SOE) Minister Dahlan Iskan to be carefully in taking a decision. There are certain rules that Dahlan has to consider in issuing a policy and he has to pay attention to the impacts it might cause. "This includes the fate of thousands of employees," Hidayatullah said. He said that Dahlan should have learned a lesson from the problem of outsourcing issues at state-owned firms which remained unsettled until today, namely the problem of thousands of outsource worker layoffs. On Sunday, some 1,000 employees staged a rally outside the Bank Tabungan Negara (BTN) head office here to reject the government`s plan to sell its stake in the state bank to fellow state lender Bank Mandiri. The demonstrators wore black uniforms and headbands reading "Reject the Acquisition of BTN" in the rally called "The Roll Call of BTN Employees` Loyalty." No less than former chief economic minister Rizal Ramli, former BTN director Siswanto, and member of All-Indonesia Housing and Settlement Developers Association (APERSI)`s executive board Susanto Mundie Sudarmo joined the rally. The demonstrators threatened to continue the rally until the government as BTN`s major shareholder cancels the planned acquisition of the bank by Bank Mandiri. In his oration, chief of BTN`s labor union Satya Wijayantara said all employees of the bank were ready to reject the acquisition. "Reject the acquisition of BTN. Return BTN to the people because it belongs to them," he said. Rizal Ramli said there was no reason for Bank Mandiri to take over BTN. "In the past few years Bank Mandiri saw its performance decline and even was left behind by fellow state lender Bank BRI. So if it plans to expand its business it must acquire a private bank rather than a state bank," he said. Therefore, State Enterprises Minister Dahlan Iskan should end the planned acquisition soon, he said.