State-owned telecommunication company PT Industri Telekomunikasi Indonesia Persero (INTI) is paying its workers’ salaries in installments on the grounds of financial constraints faced by the company.

The company has been partially delaying salary payouts since May last year. As of August this year, the company has paid the installment of Rp 1 million (US$67.28) for the delayed February salary.

The scheme was part of efforts taken by the company to pay employees’ salaries in accordance with the company’s financial capabilities, INTI president director Otong Iip said. Salaries would continue to be paid out in installments until at least the end of the year.

“This situation is caused by the company’s negative operating cash flow and equity,” he said in a statement on Thursday.

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Hundreds of employees had protested in front of the INTI office in Bandung on Aug. 29, demanding information regarding the delayed salary from the company, which has 450 employees. 

INTI has faced a declining financial situation since 2014. 

“One of the factors is past projects that have caused huge losses. The [financial pressure] continued until the company’s nonproductive debt reached 90 percent,” Otong explained.

The management started transforming the business, finances, human resources and management by the end of 2019. They also performed debt restructuring and asset optimization following the company’s declining financial performance.

“We are also supported by INTI’s entrance to the telecommunication industry cluster, so the company has a clear direction in business by focusing on Telkom Group customers,” Otong added. (dpk)