House urged to keep Jamsostek monopoly<\/p>\n
Ridwan Max Sijabat, The Jakarta Post, Jakarta<\/p>\n
State-owned insurance company PT Jamsostek and labor unions have
\nstrongly urged the House of Representatives to maintain the
\ngovernment's monopoly in running social security programs for
\nworkers, in its amendment of the social security law to allow
\nprivate company participation.<\/p>\n
They appreciated the House's move to amend Law No. 3\/1992 and
\nreform social security programs but opposed the proposal to allow
\nthe private sector to take part in running basic insurance
\nprograms. Besides being contrary to internationally-accepted
\nprinciples on social security, the workers would be unclear on
\ntheir basic protection rights, they argued.<\/p>\n
\"Both the government and the House should fully understand the
\nHuman Rights Declaration and International Labor Conventions on
\nlabor protection. They should anticipate negative consequences
\nfor such a ruling,\" Jamsostek's operation director Djoko Sungkono
\ntold The Jakarta Post by telephone from Singapore.<\/p>\n
Djoko, along with several legislators and insurance experts,
\nwas in Singapore for the last leg of a week-long road show to
\nconduct a comparative study on the implementation of social
\nsecurity systems in Southeast Asian countries and South Korea.<\/p>\n
He was commenting on the House's recent decision to amend the
\nsocial security law immediately, to allow the private sector to
\nparticipate in providing social security schemes for workers.<\/p>\n
Djoko, also an insurance expert, explained that social
\nsecurity programs were actually the state's responsibility in
\nproviding protection for workers.<\/p>\n
\"The social security scheme is mandatory because it is the
\ngovernment's obligation to provide protection for workers. So
\nfar, we have been running four of nine obligatory social security
\nprograms. The four are health care, occupational accidents, life
\ninsurance and pension programs.<\/p>\n
\"No country in the world has allowed private companies to run
\nsuch programs for reasons of accountability,\" he said, adding
\nthat there was no guarantee for workers if private companies were
\nbankrupted while running the programs.<\/p>\n
Hikayat Atika Karwa, deputy chairman of the Confederation of
\nAll-Indonesian Workers Union (KSPSI) criticized the House for
\npoliticizing the social security issue. He said, a number of
\nlabor unions had joined force with KSPSI to oppose the House's
\nproposal to allow private companies to run the programs.<\/p>\n
\"The House should not amend the social security law in order
\nto make money from private companies. The proposed reform of the
\nsocial security system is much needed, but to benefit the workers
\nnot to steal their money,\" he said.<\/p>\n
Muchtar Pakpahan, chairman of the Indonesian Prosperity Trade
\nUnion (SBSI), said his union would also be strongly opposed to
\nprivate companies involvement in the programs.<\/p>\n
\"Our current congress recommends that the government should
\nhold a monopoly in running the social security programs. This
\nallows better service and maximum benefits for the workers,\" he
\nsaid.<\/p>\n
Djoko has also urged the House to approve Jamsostek's proposal
\nto become a nonprofit institution, which would be directly
\nsupervised by the President.<\/p>\n
\"Under a nonprofit status, the government, currently the
\nbiggest shareholder, would no longer get dividends from the
\ncompany's annual profit. The government would also be required to
\ncontribute to the programs to show its commitment to providing
\nprotection for the people, as in South Korea, Thailand, Malaysia
\nand Singapore,\" he said.<\/p>\n
Under the four programs operating, Jamsostek has collected Rp
\n21.6 trillion from 26 million workers and 107 companies across
\nthe country. A bigger part of the assets has been deposited in
\nstate-owned banks, blue-chip shares and SBI promissory notes.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-urged-to-keep-jamsostek-monopoly-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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