Billions paid to redundant workers

Multa Fidrus, The Jakarta Post, Tangerang

State-owned insurance company PT Jamsostek has had to pay Rp 29 billion (US$3.41 million) in social security claims to thousands of workers from ten factories in Tangerang regency who were made redundant after ten factories were relocated to Vietnam this year.

PT Jamsostek's Balaraja branch paid Rp 17 billion to about 5,000 workers while the company's Tangerang branch paid Rp 12 billion to more than 3,500 workers.

"We had to serve at least 100 workers per day who wanted to claim their insurance money," said the Balaraja branch head of marketing division, Ace Hidayat, on Tuesday.

In Balaraja, 602 of the 1,999 firms operating locally have joined the Jamsostek insurance program. However, only 533 firms employing 250,000 workers were actively paying insurance premiums.

Ace said 45 firms employing 1,650 workers had joined the scheme this year alone.

Tangerang Manpower Agency head Apon Suryana said the number of dismissed workers this year was smaller than last year.

The closure of shoe manufacturers PT Doson alone resulted in the loss of 8,000 workers.