Government turns Jamsostek into trust fund
Ridwan Max Sijabat, The Jakarta Post, Jakarta
The government will turn the state-owned social security company, PT Jamsostek, into a non-profit financial institution, says Minister of Manpower and Transmigration Jacob Nua Wea.
The company will be managed by a tripartite board made up of representatives from laborers, government and employers, to ensure the best benefit for workers.
"Jamsostek will have new legal status as a trust fund institution, which will no longer give the bulk of its profit to the government," Yacob told The Jakarta Post on Wednesday.
If the plan is implemented, the government could no longer interfere in the company's internal affairs. Jamsostek's funds would be deposited in state banks or invested in Bank Indonesia certificates (SBI) and accountable to shareholders.
As a precaution, Jamsostek will only invest its money in financially strong companies.
"The government's dominant role caused 'leakages' and Jamsostek lost money through investing in high-risk businesses," he said.
He added that for the time being, State Minister of State Enterprises Laksamana Sukardi would give Jamsostek special treatment because the government had only Rp 163 billion in shares in the company, while workers had Rp 11 trillion.
Nuwa Wea will also ask the Attorney General's Office to investigate a huge amount of unaccounted-for funds that Jamsostek has invested in a number of private companies and banks.
"The funds must be returned to Jamsostek because they belong to the workers," he said.
The government, in cooperation with the Canadian government, will build hospitals in Jakarta, Batam, Riau and Surabaya, to provide a better medical service to workers and their families in industrial zones in those regions.
"Despite increased objections from Jamsostek, I will go ahead with the plan and I'm sure it will get support from workers," he said.
Labor bank
The ministry, in close cooperation with the All-Indonesia Workers Union Federation (FSPSI), has also planned to set up a labor bank to serve workers at home and overseas.
The labor bank, which will operate in Jakarta, will develop its networks with all development banks in the provinces and foreign banks to provide easier access for workers.
He said his campaign would target at least 5.2 million FSPSI members and 1.2 million workers overseas to become the bank's customers.
"The bank will have all workers as its clients and its main mission is to serve workers at home and provide credit facilities for those who want to work abroad.
"Many want to work abroad but have no money to buy air tickets so they have to sell their assets because they have no access to bank credit," he said.
On the Rp 3 trillion in the bank's capital required by the central bank, the minister said that the government would turn to foreign aid. If possible, he added, he would seek exemption from the requirement.
He said Kuwait and the United Arab Emirates had each committed to investing in 30 percent of the shares in the bank.