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BATAM. ConocoPhillips Indonesia has laid off 300 of its 1,200 workers employed in Anambas (Riau Islands), Jakarta and South Sumatra over the last two months in cost efficiency measures, a senior official has said.
ConocoPhillips Indonesia’s vice president for development and relations, Joang Laksanto, said current world oil prices, which had declined by almost half, had forced the US oil and gas giant to carry out efficiency measures in various sectors, one of which was by not extending work contracts.
“Currently, the oil price has fallen by almost half. We are facing a situation in which production costs remain unchanged but product prices have declined by almost half, causing an almost 50 percent decline in our income,” said Joang.
“That’s why we decided not to extend expiring work contracts for the sake of efficiency,” he went on.
Joang said ConocoPhillips was committed to not extending expiring work contracts despite protests against the policy.
During an incident on May 7, ConocoPhillips workers and local residents occupied Palmatak Airport, which is operated by the company, to protest its decision not to extend the contracts of 17 local employees.
“Although there have been requests that local workers be accommodated, I, on behalf of the company, have also requested that local leaders allow us to implement our policy [on contracts],” said Joang.
ConocoPhillips’ contract policy was introduced in February. By April 30, the contracts of 21 of the 317 ConocoPhillips workers in Anambas had not been extended, its workforce in South Sumatra was reduced from 500 to 230 while 49 of its 383 Jakarta workers were not given contract extensions. (Fadli)
