Government turns Jamsostek into trust fund

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.