Turn Jamsostek into a trust fund<\/p>\n
Ridwan Max Sijabat, Jakarta<\/p>\n
As the government, political parties and elites continue treat
\nPT Jamsostek, a state-owned company carrying out social security
\nprogram for workers, as their cash cow, for the sake of workers,
\nit will be much better for sake of the workers to change the
\ncurrent status of the social-security firm to a Trust Fund.
\nLabor unions have for long time demand the trust fund status for
\nthe company to ensure the safety of the workers' money from being
\nabused to enrich the elites.<\/p>\n
The abrupt reshuffle of the company's management on Monday by
\nState Minister for State Enterprises Soegiarto proved again it
\nwas urgent to provide better protection for the company.<\/p>\n
It looked like a blitz that struck a high tree when the
\ngovernment reshuffled abruptly the management of PT Jamsostek.The
\nreshuffle was informed to the old board of directors only two
\nhours before the inauguration of the new directors on Monday.<\/p>\n
The abrupt reshuffle shocked not only the old board of
\ndirectors whose term of office was extended for another three
\nyears in December, but also seven labor unions and the Indonesian
\nEmployers's Association (Apindo) which are main stakeholders in
\nthe company.<\/p>\n
The reshuffle took place without conducting a fit and proper
\ntest prior to their appointment and most members were hired from
\nfinancial institutions and had little knowledge about the social
\nsecurity programs.<\/p>\n
The main issue is that the reshuffle is seemingly based more
\non political interests than professionalism and workers'
\ninterests.<\/p>\n
Iwan Pontjowinoto, former president of PT Danareksa Pan
\nManagement, was appointed as new president while Iskandar
\nRangkuti, former treasury director of Bank Mandiri, and Asep Jaya
\nPrawira, former director of Permodalan National Madani's venture
\ncapital were appointed as investment director and finance
\ndirector respectively.<\/p>\n
Only Tri M. Lestari appointed as director of human resources
\nand general affairs comes from Jamsostek.<\/p>\n
The Confederation of All-Indonesian Workers Union (KSPSI) and
\nthe Confederation of Indonesian Prosperous Labor Union (KSBSI)
\nhave expressed their protest of the abrupt reshuffle for fresh
\nfears that the company's performance would continue decreasing in
\nthe next three years and more invisible hands would interfere in
\nthe company's internal affairs.<\/p>\n
There was no clear reason from the government's side about the
\nreason for the replacement.<\/p>\n
Since its establishment in 1978, Jamsostek which was
\npreviously known as DJS and Astek, has never been free from
\ninterference of corrupt government officials. A bigger part of
\nJamsostek's assets was invested in ailing companies and banks and
\nanother part was used to finance the handling of problems having
\nno relations with social security programs.<\/p>\n
Just for instances, Jamsostek has been several times defeated
\nin land cases at court after it purchased troubled spaces in
\nJakarta and outskirts, many government officials allegedly used
\nJamsostek's funds to strengthen their business emporium in 1990s.
\nBesides, Jamsostek's assets, mostly consists of pension fund
\nprogram that would be returned to workers in time, were used to
\nfinance the repatriation of illegal workers from Middle East in
\n1995 and to finance the making of a contentious labor law in
\n1997.<\/p>\n
Despite the fall of Soeharto in 1998, Jamsostek still remains
\nfinancial sources for certain sides, including ruling parties.
\nJamsostek's funds have been used by the government to lift the
\ncredibility of state-owned Bank Mandiri and Bank Rakyat Indonesia
\n(BRI). The misplacement of Jamsostek's unproportional investment
\nwere revealed following the recent financial scams at BRI and
\nnow-defunct Bank Global International.<\/p>\n
Jamsostek carries out health care, death contribution,
\noccupational accident and pension fund programs for registered 23
\nmillion workers nationwide, will remain an object of extortion by
\npolitical parties and certain groups unless an internal reform
\nwas conducted within Jamsostek.<\/p>\n
To fence Jamsostek from any interference from outside, it is
\nbetter to convert the company's status into a non-profit company
\nor Trust Funds which is directly supervised by the President and
\nmanaged by a tripartite board of commissioner representing
\nworkers, employers and the government. And not only workers and
\nemployers but also the government are also required to pay
\nmonthly payroll in their contribution to the social security
\nprograms since it is the government's obligation to provide
\nprotection for workers.<\/p>\n
Of almost Rp 34 trillion (US$ 3.5 billion) of Jamsostek's
\nasset, only Rp 140 billion derived from the government's
\ncontribution while the major part has been collected from workers
\ntaking part in the pension fund program. Jamsostek will be facing
\na serious financial problem when it has to return the pension
\nfunds to workers, most of who will enter their mandatory pension
\nage in the next ten years.<\/p>\n
To convert Jamsostek into a non-profit institution, Law No.
\n3\/1992 on social security programs needs to be reviewed to revamp
\nJamsostek and its legal status. Law No. 40\/2004 on national
\nsocial security system also needs to be reviewed since it
\nregulates that Jamsostek will be merged with social security
\nprograms for civil servants (Taspen and Askes) and for servicemen
\n(ASABRI).<\/p>\n
Both labor unions and Apindo have expressed their objection to
\nthe planned merger because Jamsostek's assets came from either
\nworkers and employers.<\/p>\n
The author is a staff writer for The Jakarta Post.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/turn-jamsostek-into-a-trust-fund-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }