Jamsostek eyes informal workers<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Amid regional autonomy, state-owned PT Jamsostek has begun
\nforging cooperation with regions to enlarge the coverage of the
\nsocial security scheme not only for workers in the formal sector
\nbut also for those employed in the informal sector.<\/p>\n
Jamsostek's president Achmad Junaidi said here on Monday that
\nJamsostek had signed an agreement with a number of provincial and
\nregental administrations to register all workers employed in
\ndevelopment projects and other fields in the informal sector.<\/p>\n
\"This move will benefit all sides. All social security funds
\ncollected from the informal sector will be deposited in local
\nbanks and workers employed in the informal sector will be well
\nprotected,\" he said.<\/p>\n
He explained that Jamsostek has been eying workers in the
\ninformal sector because of the slow growth of the formal sector
\nand the increasing number of development projects in regions in
\nline with the implementation of regional autonomy.<\/p>\n
Under regional autonomy, a bigger part of the development
\nprograms has been carried out by provinces and regions while the
\nformal sector's growth has slowed down due to the nonconducive
\ninvestment climate nationwide.<\/p>\n
\"We have to cover tens of thousands of workers employed in all
\ndevelopment projects carried out in provinces, regencies and
\nmunicipalities,\" he said, adding that Jamsostek has been also
\neying workers in the formal sector who have not been registered
\nwith the social security program.<\/p>\n
He alleged that many companies had not registered the precise
\nnumber of their workers and their monthly salaries with Jamsostek
\nto avoid paying higher premiums.<\/p>\n
With Law No. 3\/1992 on social security programs, employers
\ncover a bigger part of their workers' premiums in the health
\ncare, work-related accidents, death and pension schemes.<\/p>\n
Junaidi said further that Jamsostek had targeted one million
\nmore workers in the informal sector until 2008, especially in
\nresource-rich provinces such as East Kalimantan, Riau, Aceh and
\nPapua.<\/p>\n
Under a tripartite agreement with labor unions and the East
\nKalimantan provincial administration, Jamsostek has covered a
\ntotal of 170,000 more workers employed in construction projects
\nin Balikpapan and Samarinda.<\/p>\n
Under the cross-subsidy principle, the government requires all
\nexpatriates who are paid higher salaries in general, to join the
\nsocial security programs to help subsidize the participation of
\nlow-income workers.<\/p>\n
So far, Jamsostek has assets of Rp 33 trillion (US$3.6
\nbillion) collected from 28 million workers, including those in
\nthe informal sector.<\/p>\n
Junaidi also said that a trauma center had been established in
\nTarakan General Hospital to improve medical services for workers
\nin the province.<\/p>\n
Jamsostek also handed over an ambulance and equipment to
\nsupport the trauma center.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jamsostek-eyes-informal-workers-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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