Indonesian Political, Business & Finance News

All citizens required to get social insurance

| Source: JP

All citizens required to get social insurance

Annastashya Emmanuelle, The Jakarta Post, Jakarta

The government has completed the drafting of a bill on social
security insurance, which will oblige all citizens to participate
in the scheme, starting from 2003.

The draft was presented to President Megawati Soekarnoputri on
Wednesday by Yaumil Agoes Achir, who heads the team that drew up
the bill.

Yaumil, who also chairs the National Family Planning
Coordinating Board, said after meeting the President that the
government's proposed scheme would complement the existing
employee social security insurance run by state-owned company PT
Jamsostek.

"The (soon to be implemented) law will not undermine the
Jamsostek scheme or other social security programs, but instead
will strengthen those institutions, as we plan to cover those who
are not yet protected," Yaumil said.

Poor citizens will have their insurance covered by the
government, Yaumil said, although payments for each social group
have not yet been determined.

The social security system would be mandatory for all
citizens, and would be implemented for those who are working in
the formal and informal sectors.

Employers would also be required to contribute to the scheme
in addition to the payment taken from employees, Yaumil said,
adding that the program would be monitored and evaluated directly
by the government.

She said the program was also intended to include pensions and
unemployment benefit, as well as accident insurance cover.

In her response, President Megawati told the team to ensure
that the law would cover those living in the outlying areas of
the vast Indonesian archipelago.

Last year, when Megawati was the Vice President, she stressed
the need for a health insurance plan that would give all citizens
access to health care through a community-based insurance scheme.

"Hopefully by 2003 the draft will have been enacted," Yaumil
said.

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