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.