Govt considering amending social security: Fahmi
Govt considering amending social security: Fahmi
JAKARTA (JP): The government is considering amending the
Social Security Law to allow other companies, other than state-
owned PT Jamsostek, to run social security programs for workers.
Minister of Manpower Fahmi Idris said the government would
most likely review Law No. 3/1992 which officially names PT
Jamsostek as the sole company allowed to run social security
programs for workers.
"We will most likely review the law to let workers choose
insurance companies offering them better services," he announced
here yesterday.
"Both employers and workers should be free to select companies
offering more for workers' welfare," he said.
Increasing distaste has been voiced for the monopoly acquired
by PT Jamsostek.
Accusations of corruption and misuse of funds have plagued the
company for some time. The most high profile case was the use of
Rp 3.1 billion from Jamsostek funds last year to finance the
passing of a controversial new labor law.
Recently, more than 164,000 workers from cigarette factories
in Kudus, Central Java, said they were withdrawing their
membership from PT Jamsostek to protest the alleged corruption.
Workers have a small percentage deducted from their monthly
salaries which goes to various social security programs under
Jamsostek. Companies are also required to pay a particular amount
for each worker per month to Jamsostek.
Fahmi, who is also president of the Kodel Group, when
questioned by reporters, was adamant that none of the 22
companies in the group were in violation of Jamsostek
requirements.
"You can check them. No companies under the group are in
trouble with PT Jamsostek," he claimed, adding that each company
paid about Rp 3.5 million per month to PT Jamsostek.
"As far as I know, no company in the group is in arrears," he
said.
However, a quick check revealed that one company, PT Moya
Zamzami Utama, is in arrears amounting to over Rp 161 million for
the period between March 1994 and November 1997.
Armada Abdul Karim, chief of Jamsostek's Gatot Subroto office
which handles the account, said Jamsostek recently reported the
matter to the Attorney General's Office.
"After that, the company paid its premium for March and April
1998," he said. However, the Rp 161 million is still pending.
Armada could not comment on other companies in the group
because they are handled by other branches in the capital.
Meanwhile, minister Fahmi urged some 600 protesting employees
of PT Tarah Multi Mandiri, a bag factory in Tangerang, West Java,
to again hold tripartite negotiations with the company's
management to seek a peaceful solution to a wage dispute.
"Please, try to hold negotiations involving the Tangerang
manpower ministry office, to seek a peaceful solution to the
dispute. It is better for you to negotiate than demonstrate
here," he said in a dialog with the workers who staged a protest
at the ministry compound yesterday.
The workers resisted demands to immediately leave and stayed
for six hours. They urged the government to force the company to
keep its promise to give severance pay to workers who were
quitting.
Workers from the company initially demanded that their salary
be increased. During negotiations, the company rejected the
demand but agreed to provide three-months severance pay to
workers who decided to resign.
The workers, after discussing the matter, then decided to
resign en mass. But the company, apparently overwhelmed, decided
not to pay them the promised severance pay. (rms)