Fri, 22 Aug 2003

House to amend Jamsostek law

JAKARTA: The House of Representatives (DPR) has agreed to revise the existing Workers' Social Insurance (Jamsostek) law to promote transparency and open up an opportunity for the private sector to set up a similar institution.

During a House plenary meeting here on Thursday, House factions called for an improvement in Jamsostek's services, including increased benefits for workers.

Currently, there is only one such insurance scheme, PT Jamsostek, which is managed by the government through the Office of the State Minister for State-Owned Enterprises.

Legislator I Ketut Bagiada of the Indonesian Democratic Party of Struggle (PDI Perjuangan) said Jamsostek funds should not be managed by a state-owned company.

He also said that the current Jamsostek firm failed to protect the interests of workers. He did not elaborate.

Fellow legislator Alvin Lie of the Reform faction said Jamsostek funds should be managed by companies transparently.

As of June 2002, the total assets of Jamsostek were Rp 18.8 trillion (US$2.2 billion), 99 percent of which belonged to workers. -- JP