Govt to end Jamsostek's monopoly<\/p>\n
JAKARTA (JP): President B.J. Habibie has agreed to end the
\nmonopoly of the state-owned PT Jamsostek to run social security
\nprograms for workers, a minister said yesterday.<\/p>\n
Minister of Manpower Fahmi Idris said the government would
\nsoon revise law No. 3\/1992 to enable other institutions to work
\nin the social security business.<\/p>\n
The minister said private companies, cooperatives and other
\nstate-owned companies would be allowed to operate in the sector
\nafter the revision of the law.<\/p>\n
\"By doing so, workers will have many choices of insurance,\"
\nFahmi said after meeting the president and executives of the
\nAssociation of Labor Export Companies (Apjati) at the Bina Graha
\npresidential office.<\/p>\n
The minister, previously a successful businessman, also said
\nJamsostek must be managed by a tripartite board of directors.<\/p>\n
\"The company's management must represent workers, employers
\nand the government because the funds managed by the company come
\nfrom workers, not from the government,\" he said.<\/p>\n
According to the law at present, companies employing at least
\n10 workers, or with an annual payroll of more than Rp 1 million,
\nare obliged to participate in the insurance program.<\/p>\n
Financial scandals continue to haunt the insurance company.
\nThe Attorney General's Office is still investigating alleged
\ncorruption in the construction of the PT Jamsostek Tower on Jl.
\nGatot Subroto, South Jakarta.<\/p>\n
About 160,000 cigarette factory workers in Kudus, Central
\nJava, announced last month that they would quit the social
\nsecurity scheme and set up their own insurance body.<\/p>\n
The workers said the company only remembered to collect money
\nfrom workers but tended to ignore its obligations.<\/p>\n
\"Workers must be fully involved in the management,\" Fahmi
\nacknowledged.<\/p>\n
\"When all of the barriers are abolished, Apjati is optimistic
\nthat Indonesia can send about one million workers abroad,\" Puteh
\nnoted.<\/p>\n
Fahmi said the government has abolished the requirement to pay
\nup to US$100 for each Indonesian worker being sent abroad.<\/p>\n
\"I have abolished this unnecessary obligation,\" Fahmi noted.<\/p>\n
Puteh said his organization had demanded former minister of
\nmanpower Abdul Latief return about $10 million he collected from
\nworkers when he was a minister from 1993 to March 1998.<\/p>\n
Latief collected the fund through the Foundation of Indonesian
\nHuman Resources Development (YPSDMI), which he chaired, and
\ninsisted that he had used the fund properly for workers'
\ninterests.<\/p>\n
\"The dispute between YPSDMI and Apjati is purely a civil case
\nand the government will not interfere,\" Fahmi said. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-end-jamsosteks-monopoly-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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