KFC Indonesia to cut, delay allowance, bonus amid coronavirus pandemic

KFC Indonesia to cut, delay allowance, bonus amid coronavirus pandemic

Photo Illustration: A set meal prepared by KFC. Shutterstock/gtm

Not only in Jakarta but its stores have also closed in other cities
Jakarta (ANTARA) - An Indonesian branch of the US fast food chain, Kentucky Fried Chicken (KFC), will cut and delay monthly allowance and bonus of its employees in a bid to avoid mass terminations amid the coronavirus crisis.

The salary cut will only be applicable to employees temporarily laid off during the pandemic, while the fast food chain's top level management in Indonesia will receive the largest reduction in bonus payment, KFC's license holder for Indonesia's branch, PT Fast Food Indonesia Tbk, stated during an open session at the Indonesia Stock Exchange in Jakarta, Tuesday.

At least 97 KFC chains in Indonesia have ceased services since most malls where the stores operated were shut down due to large-scale social restrictions imposed by the local governments in several provinces, including in Indonesia's capital city, Jakarta.

"Not only in Jakarta but its stores have also closed in other cities," Director of PT Fast Food Indonesia Tbk, Justinus Dalimin Juwono, stated.

Juwono pointed out that both the company and a worker union of PT Fast Food Indonesia had signed a mutual agreement to delay and cut monthly allowance and other commissions.

Apart from a reduction in their allowance, the company also announced it would delay few stipend payments to ease the financial brunt of the health crisis.

KFC's license holder stated that some of its fast food chains remain operational amid the pandemic, but they have suspended dine-in services. During the pandemic, most KFC chains in Indonesia only process take-away orders via drive-thru and online delivery services.

Since the first two coronavirus cases were announced in the country last month, Indonesia's government, as of Monday (April 27), confirmed 9,511 COVID-positive patients, with 773 dying of the virus. Of the total number of coronavirus patients, 1,254 have recovered.
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