Govt asks for speedy endorsement of social security draft law
Govt asks for speedy endorsement of social security draft law
A. Junaidi, The Jakarta Post, Jakarta
Regardless of opposition from different groups, the government
expects the House of Representatives to endorse the social
security bill before the current term ends in August.
The head of the government team assigned to draft the bill,
Sulastomo, said the House was committed to the new social
security bill.
"We hope the bill will be approved before August, during the
House's final session. We have discussed it with the House,"
Sulastomo, the former director of state-run insurance firm PT
Askes, told The Jakarta Post.
He said a new social security system was needed because the
existing four state-run insurance firms -- PT Askes, PT
Jamsostek, PT Asabri and PT Taspen -- could only cover about 15
percent of the country's population of 216 million.
If the bill is endorsed, the four companies will be merged
into one nonprofit company within the next five to 10 years, he
said.
"With the change of status into a nonprofit firm, the coverage
will be extended," he said.
The bill, which has already been submitted to the House, was
drafted by a team set up by then vice president Megawati
Soekarnoputri's office in 2001, in compliance with the
Constitution.
Sulastomo said the new social security system outlined in the
bill was inspired by neighboring countries.
"Neighboring countries such as the Philippines, Vietnam,
Thailand are better than us in offering social security
coverage," Sulastomo said.
Many parties, including the Indonesian Employers Association,
have criticized the bill for a lack of clarity as to who will
finance the program and whether it will overlap with existing
social insurance companies.
Businesspeople also fear the enforcement of the bill will
increase the operational costs of their companies.
Hasbullah Thabrany, who was also part of the team that drafted
the bill, dismissed employers' fears the new system would prove
to be a financial burden, requiring them to pay higher insurance
premiums for workers.
"Employers will have to pay as much as they are now spending
on their employees' insurance premiums. The insurance for the
poor will be subsidized by the government," Thabrany said.
He said that with current capital amounting to over Rp 30
trillion (US$357,000), the social security system could help the
poor, who account for 20 percent of the total population.
However, passage of the bill still appears to be some way off
given the opposition in some parts of the House.
"Too many things in the bill are unclear. We don't think we
can discuss it soon," said the deputy chairman of House of
Representatives Commission VII, A. Sanoesi Tambunan.
The contentious issues include the scheme's coverage and
administration.