Airlines 'not registering workers with Jamsostek'

Airlines 'not registering workers with Jamsostek'

Ridwan Max Sijabat, The Jakarta Post/Jakarta

The government will take action against companies operating in
hazardous sectors that failed to register their workers in the
national social security scheme, says a minister.

"Besides carrying out a thorough investigation into the recent
crash involving a Lion Air plane, the government has also
assigned another team to investigate the airline for its failure
to enroll all of its air crew in the social security program,"
Minister of Manpower and Transmigration Fahmi Idris said after
attending a ceremony marking the 27th anniversary of state-owned
PT Jamsostek here on Monday.

Fahmi asserted that the government would fully enforce Law No.
3/1992 on social security so as to make sure that the employees
of all high risk companies were insured, especially airlines and
chemical industries.

"In addition, many companies have registered only some of
their workers with Jamsostek and notify the insurer of only a part of
their salaries so as to reduce the employers' responsibilities as
regards paying employee premiums," he added.

The law provides that companies employing 10 people or more
are required to register their workers in the social security
program. Workers pay only 2 percent of their gross monthly
salaries and their employers contribute 7 percent to insure their
workers in the program's healthcare, bereavement, occupational
accident and pension schemes.

Separately, Jamsostek president Achmad Djunaidi confirmed that
many major companies that employed workers in hazardous sectors
had yet take part in the social security program.

"Several airline companies employing local and foreign pilots
have not yet registered their employees. Jamsostek doesn't have
to pay anything out to the Lion Air pilot and cabin attendant who
were killed in the recent crash in Solo," he said.

Djunaidi also disclosed that state-owned electricity company
PT PLN, railway company PT Kereta Api and postal company PT Pos
had not registered their workers with Jamsostek although many
jobs in PLN and the railway company could be categorized as
hazardous.

He regretted the nation's low awareness of the need to provide
basic protection for workers, saying this would resulted in a
lack of legal certainty in the country.

Only 24.4 million out of around 100 million workers have been
registered with Jamsostek and only 12 million of them are active
participants, Djunaidi said.

The remaining 12.4 million people quit the program after
their dismissal or their decision to quit their jobs.

Djunaidi also said that the government had recently issued
Regulation No. 22/2004 allowing Jamsostek to buy mid-term notes
(MTNs), bonds, stocks and asset-based securities to help
strengthen small- and medium enterprises and generate more job
opportunities.

"Jamsostek will no longer pay dividends to the government as
the main shareholder in the company and, instead, will put aside
a bigger share of its annual profit to help strengthen SMEs and
improve workers' social welfare," he explained.

He said Jamsostek had built seven low-cost apartment projects
in Batam, Jakarta, West Java and South Sulawesi, provided
scholarships for talented children of members, built almost 30
trauma centers in state-owned hospitals in the provinces and
raised the compensation for workers who experienced occupational
accidents.