Govt considering amending social security: Fahmi<\/p>\n
JAKARTA (JP): The government is considering amending the
\nSocial Security Law to allow other companies, other than state-
\nowned PT Jamsostek, to run social security programs for workers.<\/p>\n
Minister of Manpower Fahmi Idris said the government would
\nmost likely review Law No. 3\/1992 which officially names PT
\nJamsostek as the sole company allowed to run social security
\nprograms for workers.<\/p>\n
\"We will most likely review the law to let workers choose
\ninsurance companies offering them better services,\" he announced
\nhere yesterday.<\/p>\n
\"Both employers and workers should be free to select companies
\noffering more for workers' welfare,\" he said.<\/p>\n
Increasing distaste has been voiced for the monopoly acquired
\nby PT Jamsostek.<\/p>\n
Accusations of corruption and misuse of funds have plagued the
\ncompany for some time. The most high profile case was the use of
\nRp 3.1 billion from Jamsostek funds last year to finance the
\npassing of a controversial new labor law.<\/p>\n
Recently, more than 164,000 workers from cigarette factories
\nin Kudus, Central Java, said they were withdrawing their
\nmembership from PT Jamsostek to protest the alleged corruption.<\/p>\n
Workers have a small percentage deducted from their monthly
\nsalaries which goes to various social security programs under
\nJamsostek. Companies are also required to pay a particular amount
\nfor each worker per month to Jamsostek.<\/p>\n
Fahmi, who is also president of the Kodel Group, when
\nquestioned by reporters, was adamant that none of the 22
\ncompanies in the group were in violation of Jamsostek
\nrequirements.<\/p>\n
\"You can check them. No companies under the group are in
\ntrouble with PT Jamsostek,\" he claimed, adding that each company
\npaid about Rp 3.5 million per month to PT Jamsostek.<\/p>\n
\"As far as I know, no company in the group is in arrears,\" he
\nsaid.<\/p>\n
However, a quick check revealed that one company, PT Moya
\nZamzami Utama, is in arrears amounting to over Rp 161 million for
\nthe period between March 1994 and November 1997.<\/p>\n
Armada Abdul Karim, chief of Jamsostek's Gatot Subroto office
\nwhich handles the account, said Jamsostek recently reported the
\nmatter to the Attorney General's Office.<\/p>\n
\"After that, the company paid its premium for March and April
\n1998,\" he said. However, the Rp 161 million is still pending.<\/p>\n
Armada could not comment on other companies in the group
\nbecause they are handled by other branches in the capital.<\/p>\n
Meanwhile, minister Fahmi urged some 600 protesting employees
\nof PT Tarah Multi Mandiri, a bag factory in Tangerang, West Java,
\nto again hold tripartite negotiations with the company's
\nmanagement to seek a peaceful solution to a wage dispute.<\/p>\n
\"Please, try to hold negotiations involving the Tangerang
\nmanpower ministry office, to seek a peaceful solution to the
\ndispute. It is better for you to negotiate than demonstrate
\nhere,\" he said in a dialog with the workers who staged a protest
\nat the ministry compound yesterday.<\/p>\n
The workers resisted demands to immediately leave and stayed
\nfor six hours. They urged the government to force the company to
\nkeep its promise to give severance pay to workers who were
\nquitting.<\/p>\n
Workers from the company initially demanded that their salary
\nbe increased. During negotiations, the company rejected the
\ndemand but agreed to provide three-months severance pay to
\nworkers who decided to resign.<\/p>\n
The workers, after discussing the matter, then decided to
\nresign en mass. But the company, apparently overwhelmed, decided
\nnot to pay them the promised severance pay. (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-considering-amending-social-security-fahmi-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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