Jakarta – PT Sony Electronics Indonesia (SEI) is preparing to lay off 884 employees after the closure of its Indonesian branch next month. "The plan to close the factory is clear and all employees will be laid off," Suleswati Pujiasti, senior manager of Sony Electronics Indonesia, said on Thursday.

The company's workers' union is negotiating Sony Electronics Indonesia's obligations to give severance pay to the workers. Pujiasti said the workers wanted severance pay higher than the government regulation, which stipulates a minimum payment of 300 percent of wages, depending on their working period, on the argument that the closure was not due to bankruptcy of the branch.

Asked whether some employees would be allocated to its affiliate company, PT Sony Indonesia, Pujiasti said that all employees would be laid off. "The management has targeted to finalize its obligations to employees by March 31, 2003," she added.

The government has failed to lobby the electronics giant to delay its plan to close the Indonesian branch. Sony Corp will close its Indonesian factory on the grounds that it will focus on its production activities in Malaysia.

Closure of Sony Electronics Indonesia would cause some 50,000 people to lose their jobs, including 884 SEI employees and others from 57 subcontractor companies.