Union wants Social Security Law enforced<\/p>\n
JAKARTA (JP): The All-Indonesia Workers' Union urged the
\ngovernment yesterday to enforce a 1992 law requiring companies to
\nenroll their workers in a state-owned social security program,
\nsaying that firms have already had three years of grace.<\/p>\n
Union chairman Imam Sudarwo said he was appalled at the low
\nrate of enrollment of workers in Jamsostek, the social security
\nprogram managed by the state-owned insurance firm PT Astek.<\/p>\n
\"We call on PT Astek and the government, in this case the
\nministry of manpower, to start prosecuting companies which have
\nyet to enroll their employees in Jamsostek,\" he said.<\/p>\n
Under Social Security Law it is the responsibility of
\nmanagement to enroll workers in the social security program.<\/p>\n
Although the law was passed by the House of Representatives in
\n1992, the government has allowed both Astek and companies an
\nindefinite \"grace period\" for compliance.<\/p>\n
Astek, which has a virtual monopoly over workers' insurance,
\nhas already conformed with the law by changing its program from
\nAstek (Workers' Insurance) into Jamsostek.<\/p>\n
According to Astek, so far only 52,000 companies, employing
\nabout 7.7 million workers, have joined the Jamsostek program. The
\nfirm says that in 1994 there were over 144,000 companies in
\nIndonesia, employing 30 million fixed-income staff.<\/p>\n
The company has been campaigning vigorously over the past year
\nto recruit more companies and workers pending a government
\ndecision to end the grace period.<\/p>\n
By law, companies that fail to provide social security for
\ntheir workers can be fined up to Rp 50 million (US$21,800) and
\ntheir directors can be jailed for up to six months.<\/p>\n
Imam said the low enrollment rate was due to the lack of
\nenforcement on the part of the authorities.<\/p>\n
He said Astek should be more pro-active in persuading
\ncompanies to comply with the legislation. \"We've not seen any
\ncompany punished under the law.\"<\/p>\n
Imam added that many companies that have enrolled in the
\nprogram have not been honest in the information provided to Astek
\nregarding the size of their work forces and the salaries they are
\npaying, chiefly in order to reduce the premiums paid.<\/p>\n
The law requires that workers pay a premium of 10 percent of
\ntheir salaries, seven percent of which is to be contributed by
\nemployers, while three percent is deducted from workers' pay. The
\ninsurance provided under the program covers work-related
\naccidents, health care, death and pensions.<\/p>\n
Imam also cautioned Astek on its management of the huge amount
\nof insurance funds entrusted to it, underlining that the money
\nbelongs to the workers. \"Astek should bear in mind that the funds
\ncome from workers, earned through hard work.\"<\/p>\n
He was responding to questions about Astek's plan to establish
\nindustrial joint ventures using the accumulated funds as capital.<\/p>\n
The plan, which has already been endorsed by the government,
\nincludes establishing joint ventures in the paper and plywood
\nindustries, two industries with good prospects which are
\nconsidered to be \"low risk.\"<\/p>\n
Astek currently has over Rp 3.2 trillion ($1.3 billion) of
\ninvestible funds accumulated from Jamsostek premium payments.<\/p>\n
The amount is expected to grow faster in the coming years with
\nmore companies enrolling in the social security program. Minister
\nof Manpower Abdul Latief predicted recently that Astek will soon
\nbecome one of the largest and most modern insurance companies in
\nAsia. (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/union-wants-social-security-law-enforced-1447893297",
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