House wants expats to join social security programs<\/p>\n
JAKARTA (JP): The House of Representatives Commission VII for
\nlabor and social affairs urged the government on Wednesday to
\nrevoke two controversial ministerial decrees that exempt
\nexpatriates and Indonesian overseas workers from joining social
\nsecurity programs.<\/p>\n
The commission, in a hearing with the state-owned PT Jamsostek
\nsaid the two decrees, issued by then manpower minister Fahmi
\nIdris in August 1998, were against the 1992 law on social
\nsecurity programs which stipulates that the schemes are mandatory
\nfor all Indonesian workers and expatriates working in the
\ncountry.<\/p>\n
"The government must revoke the two decrees as soon as
\npossible to provide basic insurance protection for some three
\nmillion Indonesian overseas workers and around 60,000 expatriates
\nworking in the country," said Imam Mudjiat who presided over the
\nhearing here on Wednesday.<\/p>\n
Jacob Nuawea, a commission member and a legislator of the
\nIndonesian Democratic Party of Struggle (PDI Perjuangan),
\ncriticized the former manpower minister for issuing such
\ncontroversial decrees, which he said was a move to phase out
\nJamsostek's prerogative in the management of the social security
\nprograms.<\/p>\n
"With the decrees, the government has ignored the workers'
\nright to participate in the social security scheme at the expense
\nof Jamsostek. Mysteriously, a consortium of private insurance
\ncompanies appointed by the manpower ministry to insure our
\nworkers working abroad have gone into bankruptcy," he said.<\/p>\n
He defended Jamsostek's monopoly, saying it was necessary to
\nensure funds collected from workers were secured by the
\ngovernment.<\/p>\n
Jacob, also chairman of the Federation of All Indonesian
\nWorkers Union (FSPSI), expressed regret that workers working
\noverseas have been frequently treated as a cash cow by officials
\nat the manpower and transmigration ministry.<\/p>\n
Citing an example, he said the insurance company appointed by
\nthen manpower minister Abdul Latief to run an insurance program
\nfor overseas workers collected a total of US$26 million between
\n1995 and 1997 but the funds were never returned to the workers.<\/p>\n
He also said the participation of highly-paid expatriates in
\nthe programs was also needed to subsidize local workers who
\ncontribute only a small part of their monthly wage to the
\nprograms.<\/p>\n
"It is reasonable for expatriates to contribute to the social
\nsecurity programs because besides benefiting from the programs,
\nthey also enjoy numerous facilities," he said.<\/p>\n
Junaidi, Jamsostek's president, admitted to have asked the
\nmanpower ministry to revoke the decrees but no response has been
\ngiven.<\/p>\n
He said the company has "lost" around Rp 3 billion per month
\nfrom expatriates working in Indonesia and Rp 2.5 billion per
\nmonth from Indonesian overseas workers since the decrees took
\neffect in August 1998.<\/p>\n
Minister of Manpower and Transmigration Al-Hilal Hamdi, who is
\non a working visit to strife-torn Ambon, Maluku, could not be
\nreached for comment. (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-wants-expats-to-join-social-security-programs-1447893297",
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