Existing insurance companies won't be dissolved: Official
Existing insurance companies won't be dissolved: Official
Ridwan Max Sijabat, The Jakarta Post, Pekanbaru/Riau
The government has decided not to dissolve the four existing state-owned insurance firms into the planned national social security programs but obliged them to make adjustments to avoid overlapping and confusion among the public.
Achmad Djunaidi, president of state-owned PT Jamsostek told The Jakarta Post and Kompas on Thursday that the government made the decision after receiving input from the team drafting the bill for a National Social Security System (SJSN).
"The government has decided not to merge Jamsostek, PT Taspen, PT Askes and PT Asabri with the planned national social security programs," Djunaidi said.
Jamsostek runs social security programs for around 28 million workers in both the private sector and state-owned companies; Askes provides health insurance for around 4 million civil servants; Taspen runs a pension program for civil servants; and Asabri provides health and pension programs for one million active and retired security personnel.
The government submitted to the House of Representatives (DPR) the bill for the social security program, which covers health, pensions and social welfare for all.
President Megawati Soekarnoputri appointed Coordinating Minister for People's Welfare Jusuf Kalla, Finance Minister Boediono, Health Minister Achmad Sujudi, Social Affairs Minister Bachtiar Chamsyah and the Manpower Minister Jacob Nuwa Wea to represent the government in the bill's deliberation.
Junaidi, who was involved in preparing the bill's initial draft, said the bill would serve as an umbrella for all laws on social security programs.
"The four companies will continue running their own core businesses but are required to make adjustments on minimum premiums, benefits and sanctions in line with the umbrella law," he said.
Minister Nuwa Wea had expressed his objection to the proposed merger of Jamsostek into SJSN, arguing that Jamsostek's assets of Rp 33 trillion came from the contribution of 28 million workers and more than 44,000 companies and so far, the government has yet to pay its own contribution to the programs.
"In my own capacity as manpower minister and chairman of the Confederation of All Indonesian Workers Union that has 11 million members nationwide, I do not agree with the government's plan to merge Jamsostek into the national social security programs," he told the Post by telephone Thursday.
The Indonesian Employers Association (Apindo) and several labor unions have also expressed their opposition to SJSN which they said would overburden employers and workers because of its cooperation and cross-subsidy principles.
President Megawati sent a letter to the House to explain the government's commitment to the bill.
In the urgent letter delivered on Jan. 26, 2004, the President expressed the government's political commitment to providing protection for the people in compliance with Chapters 28 and 34 of the newly amended Constitution, because the existing social security insurance companies have covered only around 20 percent of the country's 110 million workers.