Govt should not be hasty in phasing out Jamsostek's monopoly<\/p>\n
JAKARTA (JP): The Association of Indonesian Social Security
\nInsurance Companies warned the government yesterday not to be too
\nhasty in phasing out of the monopoly of PT Jamsostek, a state-
\nowned company which runs the compulsory social security program
\nfor workers.<\/p>\n
Association chairman Awaloeddin Djamin pointed out that in
\nother countries, social security programs were run by state-owned
\ncompanies or agencies under the basic principle that the
\ngovernment is obliged to protect the people.<\/p>\n
He said there were five state-owned companies that run social
\nsecurity programs in Indonesia. They are PT ASABRI, which runs a
\nsocial security program for servicemen; PT Taspen, which runs
\nprovident funds for civil servants; PT Askes, which organizes
\nhealth insurance for civil servants; PT Jasa Rahardja, that runs
\nsocial security for transport passengers; and Jamsostek.<\/p>\n
President B.J. Habibie's government is planning to review Law
\nNo. 3\/1992 -- which gives Jamsostek the monopoly to run the
\nsocial security program for workers -- arguing that monopolies
\nwere not in line with the government's spirit. It plans to open
\nways for private companies to run the programs.<\/p>\n
Awaloeddin said former president Soeharto's government had
\nactually campaigned for the inclusion of private companies in the
\nprovision of social security programs, but the House of
\nRepresentatives rejected the idea in 1992.<\/p>\n
Awaloeddin cited the difficulties that might arise should
\nprivate companies be allowed to run the social security program.<\/p>\n
\"Who would be held responsible and who would suffer losses if
\nthe private companies went bankrupt?\" he said. \"Whereas if
\nJamsostek went bankrupt the government would take care of it.\"<\/p>\n
He said private commercial insurance companies should have
\ntheir core business in commercial fields and not in public
\nutilities.<\/p>\n
\"A monopoly giving benefits or utilities to a majority of
\npeople should be maintained and should be held by state-owned
\ncompanies,\" he said, citing electricity and train companies.<\/p>\n
Awaloeddin, also a former minister of manpower, urged the
\ngovernment to return Jamsostek and four other social security
\ninsurance companies to their initial status of \"public companies\"
\n(perum) and to give them special treatment just for their social
\nmission.<\/p>\n
\"If they remain under their current status as limited
\ncompanies (PT), they will continue to be profit-oriented, obliged
\nto pay taxes and share dividends annually to the government,\" he
\nsaid.<\/p>\n
But if the companies' status reverted to perum, he said, they
\nwould be bound to their public service mission and exempted from
\npaying tax.<\/p>\n
He said that additionally, the 1969 law on perum should be
\nrevised to phase out public companies' obligations regarding
\ntaxes and dividends.<\/p>\n
\"With a revised law on perum, the five companies would not
\nhave to pay taxes and share dividends to the government,\" he
\nsaid.<\/p>\n
Minister of Manpower Fahmi Idris acknowledged separately that
\nthe social security program should ideally be run by the
\ngovernment.<\/p>\n
However, \"do we want the social security program to be run by
\na government which easily interferes in the company's internal
\naffairs, including its investment policy?\" he said in a seminar
\non industrial relations here yesterday.<\/p>\n
Review<\/p>\n
He said that he has set up a special team to prepare a
\njudicial review to the law.<\/p>\n
He said he wanted the social security to be run by the
\ngovernment in cooperation with cooperatives and private
\ncommercial insurance companies.<\/p>\n
Datuk Bagindo, chairman of the Federation of All Indonesian
\nWorkers Union (FSPSI), said that the social security program for
\nworkers should be run by an independent state agency.<\/p>\n
\"If Jamsostek is run by an independent agency... it will have
\nthe authority to manage the funds collected from workers and the
\ngovernment could not easily interfere in its internal affairs,\"
\nhe said.<\/p>\n
Ackmal Husin, president of Jamsostek, said the company
\nsupported the government's plan to phase out its monopoly. He
\nalso said the company was ready to compete in giving the best
\nservice to workers.<\/p>\n
Jamsostek recently found itself in hot water over corruption
\nallegations, including in relation to the construction of two
\ntowers in Jakarta and the use of Rp 71 billion (US$6.1 million)
\nto finance the deliberation of the controversial labor law last
\nyear.<\/p>\n
As of July 1998, Jamsostek's assets were Rp 6.7 trillion and
\nit was serving 14.5 million across the country. (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-should-not-be-hasty-in-phasing-out-jamsosteks-monopoly-1447893297",
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