Astek diversification plan meets opposition<\/p>\n
JAKARTA (JP): The state-run insurance company PT Astek's plan
\nto invest its clients' money in other ventures met with strong
\nobjection from the House of Representatives yesterday.<\/p>\n
Legislators from different political factions joined hands in
\na hearing with Astek officials to foil the plan, which they said
\nwas "deviating from the firm's original mission as a non-profit
\ninstitution".<\/p>\n
Members of House Commission VI on labor affairs suggested that
\nAstek stick to its original social mission, as required by the
\n1992 law on social security program.<\/p>\n
"The law prohibits Astek from becoming a business entity,"
\nlegislator Odiyanto of the Armed Forces faction said. "Astek is
\nto serve workers' interests and nothing else."<\/p>\n
Astek President Abdullah Nusi told the hearing, chaired by
\nlegislator Haris Soedarno, that the firm means to set up
\nsubsidiaries and use the profit for the welfare of workers and to
\ncreate more jobs.<\/p>\n
He said Minister of Manpower Abdul Latief and Minister of
\nFinance Mar'ie Muhammad, in their capacity as Astek's share
\nholders, have approved the plan.<\/p>\n
"Astek means to set up subsidiaries with cement, pulp and
\npaper, property and hospitals as their core business. This would
\nbe better than depositing the funds in banks," he said, adding
\nthat almost all developed countries do the same.<\/p>\n
Astek, set up in 1987 to manage social security insurance,
\nwhich covers occupational accidents, health care and pension
\nfunds, has accumulated Rp 3.2 trillion (US$1,4 billion) from 7.6
\nmillion workers. Over 51,000 companies have participated in the
\nprogram. Its investment fund is expected to reach Rp 15 trillion,
\nwith about 30 million clients, in the year 2000 and Rp 70
\ntrillion with 87 million clients in 2018.<\/p>\n
Opposition to the diversification plan also came from a
\nlegislator in the ruling Golkar party, Rambe Kamarosaman.<\/p>\n
"This company was established not to do business and make
\nprofit but to serve and protect workers," he said.<\/p>\n
Pranowo, of the Armed Forces faction, said that Astek, as a
\nstate-owned company should, instead of doing business, focus on
\ngiving its best service to workers.<\/p>\n
"The funds that have been accumulated by Astek belong to the
\nworkers. Therefore, they have a priority to be served and
\nprotected.<\/p>\n
"But now what happens? Astek has yet to succeed in enforcing
\nthe law, to have all paid workers and companies participating in
\nthe social security program," he said.<\/p>\n
Royani Haminullah of the Indonesian Democratic Party faction
\nwarned that Astek should be extra-careful in managing the funds
\nit has collected from workers, saying that the more subsidiaries
\nthe company had, the more inefficient it would be.<\/p>\n
He stressed that Astek should not put the funds on the line as
\nmost workers still live in poverty.<\/p>\n
Citing recent findings of the Government Audit Agency, he said
\nthat Astek has used the participants' money for unaccountable
\nprojects.<\/p>\n
He cited, as examples, that the company purchased Rp 1.4
\nbillion shares of Damai Indah Padang Golf and Cibodas Golf Park
\nin West Java in 1993, and Rp 9.2 billion shares of PT Textronics.<\/p>\n
Minister Latief also said recently that PT Astek was planning
\nto establish a pulp and paper factory and a cement plant, which
\nwould be financed with the participants' money. (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/astek-diversification-plan-meets-opposition-1447893297",
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"sponsor": "Okusi Associates",
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