Companies probed for social security arrears

Multa Fidrus, The Jakarta Post, Tangerang

Banten provincial office of the National Body for Asset Recovery and Auction (BUPLN) has been investigating 69 companies that have not paid social security premiums for their workers since January to the state-owned insurance company, PT Jamsostek.

Head of the marketing division of PT Jamsostek's Balaraja branch Ace Hidayat said on Wednesday that the branch and Tangerang Manpower Agency had sent warning letters to the 69 companies but they had not responded.

"We reported the companies to the national body because their managements failed to fulfill our summons to clarify the matter," he said.

Ace said that the national body had assigned a joint team from the police, Tangerang Prosecutor's Office and the manpower agency to identify why the companies had failed to pay the social security premiums for their workers.

"There are three possibilities: First, the companies cheated their workers. They continued to subtract premium payments from their workers' wages but didn't pass the money on to us," Ace said.

"Second, they closed down their businesses or third, the management at the companies has changed."

The companies will be taken to court if they deliberately violate Law No. 3/1992 on Jamsostek. Should they be closed down, they will be deleted from the Jamsostek list. If the companies' managements have changed, they must inform PT Jamsostek and pay the premiums.

PT Jamsostek's Balaraja branch paid out Rp 17 billion (US$2 million) to about 5,000 workers made redundant after 10 factories were relocated to Vietnam this year.