House commission wants end to social security monopoly<\/p>\n
JAKARTA (JP): A commission of the House of Representatives
\n(DPR) yesterday called on the private sector to establish social
\nsecurity companies and end the virtual monopoly of the state-
\nowned PT Astek.<\/p>\n
The House's Commission VI on labor affairs said the more
\ncompanies running the program, the more efficient and effective
\nthe social security programs should be.<\/p>\n
The proposal was made during a hearing between the commission
\nand directors of Astek, which had been criticized for the way the
\nstate company has been managed.<\/p>\n
M.Z. Wasaraka of the ruling Golkar faction, who chaired the
\nhearing, questioned Astek's monopoly in running the social
\nsecurity program for workers in Indonesia.<\/p>\n
The company should share the burden with other companies, he
\nsaid, pointing out that healthy competition would mean that
\ncompanies could strive to give their best service to workers.<\/p>\n
Astek, a state company administered by the Ministry of
\nManpower, currently has a virtual monopoly over the business of
\nproviding social security programs, although the 1992 law on the
\nsubject made no mention of it being the only company.<\/p>\n
By last December, Astek's Jamsostek program has covered 45,500
\ncompanies and 5.7 million workers. Its funds had accumulated to a
\ntotal of Rp 1.7 trillion ($800 million).<\/p>\n
Jamsostek program covers health, pensions as well as
\nprotection against accidents and death at work places.<\/p>\n
Astek President Abdillah Nusi argued during the hearing
\nhowever that more companies necessarily means greater efficiency.<\/p>\n
\"Astek principally has no objection to the commission's
\nsuggestion, but the factors of inefficiency and ineffectiveness
\nshould be taken into consideration,\" he said.<\/p>\n
Even in countries like the United States, Canada and Britain,
\nthere is now a tendency to hand over the business of providing
\nsocial security programs to a single company, state or private,
\nhe said.<\/p>\n
Never late<\/p>\n
Abdillah said his company has the capacity to handle all the
\nsocial security program needs of Indonesia by itself for at least
\nthe next 15 years.<\/p>\n
He pointed out that Astek had so far only managed to tap about
\n30 percent of the 140,000 companies which by law should provide
\nsocial security programs to their workers.<\/p>\n
He also defended Astek's record in maintaining its services to
\nthe participants of the program, pointing out that the company
\nwas never late in paying claimants.<\/p>\n
Abdillah, who was appointed as president by Minister of
\nManpower Abdul Latief last February, said he was currently
\nrevamping the company as part of his effort to recruit a total of
\n30 million workers to join the Jamsostek within the next 15
\nyears.<\/p>\n
The company's campaign had focused more on informing companies
\nof their obligation to provide social security programs for
\nworkers. Now the campaign is emphasizing enforcement, he said.<\/p>\n
The 1992 law on social security stipulates that all companies
\nemploying more than 10 workers must enlist them into social
\nsecurity programs. Violators are subject to a fine of Rp 50
\nmillion or six months imprisonment.<\/p>\n
Responding to a question, Abdillah ruled out the possibility
\nof foreign investors entering the social security business in
\nIndonesia. (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-commission-wants-end-to-social-security-monopoly-1447893297",
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