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)