Consortium established to protect workers abroad
Consortium established to protect workers abroad
JAKARTA (JP): Twenty private insurance companies agreed
yesterday to form a consortium to set up an insurance coverage
scheme to protect Indonesian workers working overseas.
This new agreement effectively ends the controversial monopoly
held by the Human Resources Development Foundation (YPSDM), owned
by former minister of manpower Abdul Latief, on insurance for
workers heading abroad.
The agreement was reached between the insurance companies and
about 100 labor export companies in a meeting presided over by
Director General of Labor Placement Din Samsudin here yesterday.
Didi Wijaya, marketing manager of insurance company PT
Beringin Life, said that three or four individual insurance firms
would cooperate together to offer insurance coverage to labor
export companies.
These labor export companies would then be free to decide
which insurance firm or cooperation to use.
"The insurance will cover protection in occupational
accidents, deaths, transportation, medical service and legal
problems," he said.
He expects the consortium to table a draft insurance scheme in
10-days so it can be discussed with labor export companies.
Minister of Manpower Fahmi Idris issued last month a
ministerial decree stipulating that labor export companies were
responsible for providing protection to workers. All workers sent
overseas are obliged to participate in a social security program.
The new decree comes on the heels of strong protests by the
labor export companies against YPSDM, which they claim has
refused to pay insurance claims to troubled workers abroad.
Anthon Sihombing, secretary-general of the Association of
Labor Export Companies (APJATI), claims that YPSDM has collected
at least US$15 million since its establishment in 1996 but has
never paid insurance claims to troubled clients.
"The foundation collects $80 from each worker sent overseas,
but has never paid anything to the workers. Besides, all forms of
monopoly should be eliminated," said Anthon, who is also
president of labor export company PT Luhur Asa Vrima.
Wijaya said his insurance company was ready to compete by
offering better services to workers.
Meanwhile, Mansur, chairman of the East Java APJATI branch,
called on the government to take strict measures against labor
export companies found guilty of deceiving and abandoning
workers.
"The government should be strict with violating companies to
help eliminate cases of fraud and inhumane treatment toward
workers," he said.
He contended that the government should revoke the license of
PT Bina Inti Utama, which had been found guilty of collecting
placement fees from workers but had not sent them abroad.
The workers have lodged their own lawsuit against the company
at the Surabaya District Court.
Official figures put the number of Indonesians working abroad
at about 1.9 million. (rms)