Ancol Cuts Directors' Salary To Survive The COVID-19 Pandemic

JAKARTA - PT Pembangunan Jaya Ancol Tbk (PJAA) has been affected by the COVID-19 pandemic. This is because from March 14 to June 19 this recreational area in DKI Jakarta had to be closed to prevent the spread of the virus, resulting in lost income.

Even though at this time the recreation has been opened, the company still has to limit the number of visitors, in order to avoid spreading COVID-19. To deal with losses due to the pandemic this year, the company also has a number of strategies to survive.

Finance Director for Pembangunan Jaya Ancol, Hari Sundjojo, said that his party was making cash flow efficiency efforts, including cutting the income of the board of commissioners and directors for the period July to December 2020.

"Employee fees other than salary or income are eliminated," he said in a video conference with journalists, Monday, August 24.

Not only that, Hari said, the company also voluntarily cut the holiday allowance (THR) at the board of directors and senior management level to be given to resellers, fishermen and residents around Ancol.

In addition, the company also provides voluntary allowance for employee income for equipment and tools, purchase of feed and medicines for animals.

"The payment for performance production services in 2019 has also been postponed," he said.

Apart from that, Hari said that Ancol also maintains the current employees. This is done to maintain the company's finances, as well as to indicate that there are no new recruits this year.

"For capital intensive, we have no acceptance this year. We are trying to survive with the existing formation, and all employees are active to assist operations during the reopening," he said.

He said that the company also carried out efficiency with the basic cost concept, in which the cost was only for the current workforce, as well as maintenance of rides.

Before the pandemic, his party allocated a capital expenditure (capex) of IDR765 billion. However, currently the company has cut Rp587 billion, leaving Rp178 billion.

"On March 14 we closed operations and June 20 just reopened. So, effective in June we only opened 10 days, so we revised the capex expenditure to Rp178 billion," he said.

Furthermore, Hari said, the source of capex funding was taken from internal cash, bank loans, to issuance of bonds or bonds. In the first semester of 2020, the company has absorbed capital expenditures of IDR 110 billion.

Due to the cut capex, the company has to postpone a number of tourism development projects, and only focus on completing renovation of the beach park or symphony of the sea projects, namely renovations in the stone area, water and sand area, and green area. This garden project has an area of approximately 51,000 square meters.

"We have to save very much, choose expenses accurately and accurately. What can be postponed, we delay, what can we reduce, we reduce. But this without reducing the need for animals, rides and other care, as well as employee salaries," he said .