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)