Workers Demonstrated Due To Installments Of THR, Pan Brothers Reaped IDR7.81 Trillion In Income Per Third Quarter 2020

Deputy President Director of PT Pan Brothers Tbk, Anne Patricia Sutanto. (Capture the Gates Institute Youtube screen)

JAKARTA - The garment and textile company PT Pan Brothers Tbk (PBRX) was demonstrated by thousands of workers at the Boyolali factory, Central Java, ahead of Lebaran 2021. This action was motivated because they received information that their salaries this month will be paid in installments twice. In addition, the holiday allowance (THR) is paid in installments.

Deputy President Director of PT Pan Brothers Tbk, Anne Patricia Sutanto spoke up about the demonstration. He did not deny the question of workers' protests regarding the company's move to pay the THR up to eight times. However, he denied that the salary was paid in installments.

Anne said that currently the company is facing tight liquidity challenges. The company must share cash flow by paying obligations to banks and suppliers, along with salaries and THR that must be paid to workers.

"Our liquidity is tight. Because the LC facility in the banking sector has decreased by 90 percent, only 10 percent is left. So we have to share with supplier payments. Regarding banking matters, our workers do not understand," he told VOI, Wednesday, May 5.

In the midst of tight liquidity conditions due to the pandemic, Anne said the company had to rack its brains to keep the PBRX business running. Because, if the supplier is not paid on time it will have an impact on production. In addition, the decision to pay THR is in installments to avoid employee layoffs.

"Pan Brothers is able to pay the THR, as long as it is paid in installments, it can't be in full. Later all THR will be paid," he said.

Anne said that currently management and employees have found the best efforts to solve the problem. After the company explains the problems that occur in the company.

"So the point is that we should be open about banking. Because for our employees it can be understood, Pan Brothers is full operation, still paying THR gradually and we are finally open to all workers. Hopefully this can be understood all of them," he said.

Pan Brothers Performance

Pan Brothers have not reported their full year 2020 performance. Quoted from the information disclosure page of the Indonesia Stock Exchange (IDX), PBRX has just reported their performance as of the third quarter of 2020.

Pan Brothers managed to record profit growth with a higher percentage compared to its revenue until the third quarter of 2020. Based on the financial report per September 2020, the company posted profit for the period attributable to the owners of the parent company of US $ 20.59 million, an increase of 32, 49 percent over the same period the previous year.

By calculating the Jisdor exchange rate as of September 30, 2020 at IDR 14,918 per US dollar, PBRX's net profit per quarter III 2020 is equivalent to IDR 307.16 billion.

Meanwhile, Pan Brothers' revenue was able to grow 6.49 percent annually to US $ 523.79 million or around Rp.7.81 trillion by the third quarter of 2020.

Even though it fell by 3.07 percent compared to the September period last year, export sales were still the main support for the company's revenue which amounted to US $ 449.59 million, followed by local sales which rose rapidly at 167.81 percent on an annual basis of US $ 75.40 million before deducting returns. and discounts.