Govts vows to force state firms to joint Jamsostek

The Jakarta Post, Jakarta

The government complained on Tuesday that many state enterprises had not insured their employees with state-owned insurance firm PT Jamsostek, even though the social security program is mandatory for all workers.

"Many state-owned companies have not yet registered their workers with PT Jamsostek, which was established by the government to manage the occupational social security program," Minister of Manpower and Transmigration Fahmi Idris said.

He promised, however, to coordinate with both the state minister for state enterprises and the minister of justice and human rights to ensure that all state-owned firms participated in the mandatory program.

Fahmi made the comments when handing over almost Rp 1.5 million (US$157) in occupational accident compensation for five workers who were killed in the Dec. 26, 2004, tsunami in Aceh, and in the April 12 crash of a PT Germania Trisula Air Twin Otter aircraft in Timika, Papua.

Fahmi said he would ask Minister of State Enterprises Sugiharto to use his powers to oblige state enterprises to insure their workers, and Minister of Justice and Human Rights Hamid Awaluddin to investigate state-owned firms that failed to do so.

Fahmi did not name point to any state enterprises in particular. Nor did he say what the government would take to punish those that failed to join Jamsostek.

Reliable sources with Jamsostek said that PT PLN, PT Pos and PT Kereta Api Indonesia (KAI), which together employ tens of thousands of workers, were among the major state-owned companies yet to insure their employees.

Under Law No. 3/1992, all companies and profit-making organizations employing 10 workers or more, and organizations paying their workers Rp 1 million or more, are required to insure their employees under the social security program.

In addition, Government Regulation No. 14/1993 states that workers and their employers are jointly responsible for paying the monthly premiums of up to eight percent of gross monthly wages for their participation in the healthcare, occupational accident, bereavement and pension programs.

Fahmi said the social security scheme would not provide maximum benefit unless all companies insured their workers with Jamsostek.

Data from Jamsostek shows that of 26 million workers registered with the company, only 7.6 million are active members while more than 40 million workers employed in the informal sector are not covered by any form of social security program.

"It is now the task of the new management of PT Jamsostek to seek an effective way of insuring workers in the informal sector," he said.

Jamsostek President Iwan Pontjowinoto admitted that many big private sector companies were also failing to comply with the Social Security Law.

"Many firms have failed to register their employees with Jamsostek, while many others do not inform us of the gross monthly salaries of their workers.

"Many workers who are injured or killed in occupational accidents do not receive any compensation from Jamsostek because they are not registered, or receive only small amounts of compensation because the size of their salaries as reported to Jamsostek is far less than their real gross monthly wages," Iwan said.