Social security system<\/p>\n
I am writing in response to an article written by Dr.
\nHasbullah Thabrany in The Jakarta Post, May 27, in which he
\nresponded to my May 4 article on the National Social Security
\nSystem Bill (SJSN) currently being considered by the House of
\nRepresentatives.<\/p>\n
The reason why workers and employers alike do not put much
\nfaith in the proposed SJSN scheme is because the benefits offered
\nby the current social security schemes (Jamsostek, Taspen, and
\nAskes) are very small, due to the low return on investments in
\nthese schemes, which is far below the market interest rate.<\/p>\n
In addition, there are many anecdotal accounts of poor
\ngovernance that exist in the schemes' management. Without major
\nreforms, it is feared that the SJSN scheme would suffer the same
\nfate as the current social security schemes. That is why workers
\nare reluctant to invest their salaries.<\/p>\n
The Chilean private social security scheme mentioned by Dr.
\nThabrany in his article was created because the country suffered
\nfrom the same problems as our social security system today (low
\nbenefits, poor governance, and a rapidly aging population).<\/p>\n
After more than two decades of implementation, it has been
\ncredited with increasing economic growth in the country, and
\nimproving the investment climate, savings rate, and workers'
\nretirement benefits, and has led to Chile's economy being
\nconsidered one of the strongest in Latin America.<\/p>\n
Due to this success, other countries have established similar
\nprivate social security schemes. They range from developed
\ncountries, such as Australia, Sweden, and the United Kingdom to
\ndeveloping countries such as Argentina, Mexico, and Poland. In
\naddition, several other countries such as Brazil, China, and
\nIndia (developing countries); Russia (a former socialist
\ncountry); and Italy and the United States (developed countries)
\nhave either planned, or already started, the reform of their
\nnational social security schemes, using the private social
\nsecurity system.<\/p>\n
Instead of pursuing a monopolistic government-run social
\nsecurity scheme, such as has been abandoned by most countries in
\nthe world, Indonesia should seriously consider adopting a private
\nsocial security scheme, since it has proven successful in
\nincreasing economic growth, investment returns, and workers'
\nwelfare in all the countries that have adopted it.<\/p>\n
ALEX ARIFIANTO
\nThe Smeru Research Institute
\nJakarta<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/social-security-system-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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