Government mulls altering Jamsostek's status<\/p>\n
JAKARTA (JP): The government is considering to change the
\nstatus of state-owned social insurance company PT Jamsostek into
\na non-profit organization as part a reform program in the
\ncountry's social security system, Minister of Manpower Bomer
\nPasaribu said on Thursday.<\/p>\n
Bomer said the change was needed to ensure that all the money
\nraised by the insurance company was used for the welfare of the
\nworkers.<\/p>\n
A non-profit organization would benefit workers more compared
\nto its present status as a limited liability company, the
\nminister said, adding that running a business entity to manage
\nworkers' security funds was unwise.<\/p>\n
\"It's common throughout the world to have a trustee handling
\nsocial security funds,\" Bomer said on the sidelines of a seminar
\nabout reforms in social security, the insurance industry and
\npension funds, organized by the Indonesian Chamber of Commerce
\nand industry.<\/p>\n
He said since Jamsostek was wholly owned by the government,
\nworkers and business organizations had little control over how
\nthe company managed their funds.<\/p>\n
Bomer said under Jamsostek's present status, the government
\nhad little accountability toward the owners of the funds.<\/p>\n
\"While the accountability of a trustee is toward its owners,\"
\nhe added.<\/p>\n
The institution which would replace Jamsostek would still
\ncollect premiums from workers but the funds would be managed by
\nprofessionals.<\/p>\n
At present, all companies in the country must insure their
\nworkers with Jamsostek, which provides not only insurance
\npackages but also offers saving schemes.<\/p>\n
Bomer said State Minister of Investment and Enterprises
\nEmpowerment Laksamana Sukardi shared his view and that both
\nsought to meet Finance Minister Bambang Sudibyo for further
\ndiscussions.<\/p>\n
Bomer said the idea had also gained support from the
\nInternational Labor Organization (ILO) and he awaited further
\ntalks between related ministries by the end of the year.<\/p>\n
Meanwhile, advisor to the Indonesian Association of Pension
\nFunds, Kadarisman, said that since Jamsostek was a limited
\nliability company, it must comply with all the stipulations of
\ncorporate law.<\/p>\n
\"As a limited liability company, Jamsostek should generate
\nprofits, pay dividends to shareholders and pay taxes to the
\ngovernment,\" Kadarisman said.<\/p>\n
If the status of Jamsostek was changed, it would no longer be
\nobliged to pay dividends or taxes to the government, he said.<\/p>\n
\"So no money should come out except for payments to workers,\"
\nhe said.<\/p>\n
According to him, Indonesia was the only country to have a
\nlimited liability company managing social security funds.<\/p>\n
He also called on the government to subsidize Jamsostek in
\ntimes of difficulty as providing social security was part of a
\ngovernment's responsibility.<\/p>\n
Jamsostek president, Ackmal Husin, in his paper suggested that
\nthe company should become an independent agency with special
\nauthority to ensure all companies in the country join its social
\nsecurity programs.<\/p>\n
Ackmal cited similar organizations in the Philippines and
\nMalaysia have such an authority allowing them to impose a penalty
\non companies refusing to join their programs.<\/p>\n
He said Jamsostek should report to the president, but under
\nthe supervision of a tripartite agency consisting of
\nrepresentatives of workers, employers and experts of social
\nsecurity.<\/p>\n
Insurance expert Indra Hattari said social security funds
\nshould be handled by a non-profit agency who would place the
\nfunds in long term government bonds.<\/p>\n
He said a council of ministers encompassing those of manpower,
\nhealth, social, finance and the governor of Bank Indonesia,
\nshould supervise the agency.<\/p>\n
Indra stipulated that the government should fully utilize the
\nsocial insurance system as an instrument to collect funds for
\nlong term investments. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-mulls-altering-jamsosteks-status-1447893297",
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