Managing social security<\/p>\n
After some hesitancy, PT Jamsostek, the state-owned social
\nsecurity company, has admitted that it took Rp 3.1 billion
\n(US$1.3 million at the old exchange rate of Rp 2,400 per $1), out
\nof its huge fund for what really amounted to \"servicing\" honorary
\nmembers of the House of Representatives in deliberating the
\ngovernment-sponsored manpower bill this year.<\/p>\n
On Wednesday, Jamsostek president Abdillah Nusi confirmed the
\nallegation which had been circulating for three days. But he
\ndefended the move as being the company's contribution toward the
\nnew law which he insisted was designed to give greater protection
\nto Indonesia's 90-million-strong workforce. \"What's Rp 3.1
\nbillion if it means protecting millions of workers?\" he said
\nsmugly.<\/p>\n
Jamsostek and senior officials of the Ministry of Manpower had
\nbeen ducking the question for three days since copies of the
\ncorrespondence between the ministry and the insurance company
\nfound its way to reporters Monday. Some, like Minister of
\nManpower Abdul Latief, tried to hush persistent reporters. Others
\neven issued outright denials.<\/p>\n
The ministry, which oversees PT Jamsostek, represented the
\ngovernment in the deliberation of the manpower bill which the
\nHouse endorsed in September.<\/p>\n
The bill had been a source of controversy from the start, with
\nlabor activists, including those from the government-backed
\nFederation of the All-Indonesia Workers Union, denouncing it as a
\nstep backward. Deliberation was postponed until after the May
\nelection. When the House started debating the bill, it did so in
\na swift manner, working overtime, while often taking the
\ndeliberations to luxury five-star hotels. Hence, so the argument
\ngoes, the huge contribution from PT Jamsostek.<\/p>\n
While Wednesday's admission by Abdillah Nusi was welcomed, it
\nis but a first step toward clarifying what some newspapers have
\nalready described as a scandal. There remain many unanswered
\nquestions about the purpose of the money, the amount involved,
\nthe extent to which the Ministry of Manpower can dictate to PT
\nJamsostek, and about the way that Jamsostek's huge fund is
\nmanaged, or more aptly perhaps, mismanaged. There are also
\nquestions about the delay in clarifying the issue, and about the
\napparent lack of candor among the officials.<\/p>\n
In all fairness to Jamsostek executives, some of these
\nquestions should be answered by minister Latief. Already, some
\nlabor activists suspect collusion between the government and the
\nHouse in ensuring the bill's smooth passage.<\/p>\n
Jamsostek's fund -- the company collected Rp 1.1 trillion in
\npremiums from workers last year -- is essentially money entrusted
\nby hundreds of thousands of people to the social security
\nprogram. How the fund is managed, therefore, should be more
\ntransparent. It is not enough to simply state that all its
\nspending had been approved by the board of commissioners, like
\nthe Rp 3.1 billion for the deliberation of the bill.<\/p>\n
The latest disclosure adds to the list of questionable
\ninvestments or expenditures that Jamsostek has made this year.<\/p>\n
Last week, the Supreme Audit Agency ordered a reappraisal of
\nthe cost of constructing the Rp 319.5 billion Menara Jamsostek, a
\nluxury office building on Jl. Gatot Subroto, noting an unusually
\nhigh markup. Then there was the disclosure that Jamsostek had Rp
\n125 billion deposited in five of the 16 banks that were
\nliquidated by the government this month. Jamsostek has also
\nadmitted that it lost Rp 100 billion from the Rp 250 billion it
\ninvested in the stock market because of the plunge in share
\nprices.<\/p>\n
Accountability is one thing, but good management is another.
\nAt the end of the day, Jamsostek may be able to account for every
\nrupiah it spends and invests, and it may have valid excuses for
\nsome of the investments that go sour. But if some of these
\ninvestments and spending look questionable, it is hardly
\ncomforting to the real shareholders -- the workers.<\/p>\n
This negative publicity does not bode well for Jamsostek's own
\ncampaign to recruit more participants into its social security
\nprogram. Despite a law compelling companies to enlist their
\nworkers, PT Jamsostek -- at the last count in June -- only had
\nmanaged to recruit workers in 83,100 of the country's 400,000
\nregistered companies.<\/p>\n
Jamsostek's management, and its supervisors at the Ministry of
\nManpower, must do a lot more explaining if it wants to convince
\nmore and more workers to entrust their money -- and therefore
\ntheir fate and future -- with the company.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/managing-social-security-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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