Companies probed for social security arrears

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.