As employees’ salaries rise, Metrodata’s profit plunges

The Jakarta Post ,  Jakarta   |  Fri, 11/06/2009 9:09 PM  |  Business

Publicly listed PT Metrodata Electronics, one of the country’s largest information technology companies, reported a 66.85 percent decline in net profit during the first nine months of the year from the same period in 2008 on soaring salary costs.
 
According to the company’s financial report published on Friday, Metrodata gained Rp 2.32 trillion (US$245.4 million) in sales as of September 2009, representing a mere 0.3 percent growth from last year’s Rp 2.31 trillion.
 
However, the soaring operational costs have caused the company to earn only Rp 7.83 billion ($828,000) in net profit as of September 2009, a fall from last year’s Rp 23.62 billion.
 
The increasing expense of salaries and other employee benefits were likely the main factor in the overall cost boost.
 
The company, including all of its subsidiaries, employed 1,426 people as of September 2009, representing an increase of 226 employees from last year.
 
The report revealed that the company paid Rp 120.25 billion in salaries during 2009’s first nine months, Rp 31.77 billion (35.9 percent) higher than last year’s Rp 88.48 billion. (bbs)

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