House wants expats to join social security programs

House wants expats to join social security programs

JAKARTA (JP): The House of Representatives Commission VII for
labor and social affairs urged the government on Wednesday to
revoke two controversial ministerial decrees that exempt
expatriates and Indonesian overseas workers from joining social
security programs.

The commission, in a hearing with the state-owned PT Jamsostek
said the two decrees, issued by then manpower minister Fahmi
Idris in August 1998, were against the 1992 law on social
security programs which stipulates that the schemes are mandatory
for all Indonesian workers and expatriates working in the
country.

"The government must revoke the two decrees as soon as
possible to provide basic insurance protection for some three
million Indonesian overseas workers and around 60,000 expatriates
working in the country," said Imam Mudjiat who presided over the
hearing here on Wednesday.

Jacob Nuawea, a commission member and a legislator of the
Indonesian Democratic Party of Struggle (PDI Perjuangan),
criticized the former manpower minister for issuing such
controversial decrees, which he said was a move to phase out
Jamsostek's prerogative in the management of the social security
programs.

"With the decrees, the government has ignored the workers'
right to participate in the social security scheme at the expense
of Jamsostek. Mysteriously, a consortium of private insurance
companies appointed by the manpower ministry to insure our
workers working abroad have gone into bankruptcy," he said.

He defended Jamsostek's monopoly, saying it was necessary to
ensure funds collected from workers were secured by the
government.

Jacob, also chairman of the Federation of All Indonesian
Workers Union (FSPSI), expressed regret that workers working
overseas have been frequently treated as a cash cow by officials
at the manpower and transmigration ministry.

Citing an example, he said the insurance company appointed by
then manpower minister Abdul Latief to run an insurance program
for overseas workers collected a total of US$26 million between
1995 and 1997 but the funds were never returned to the workers.

He also said the participation of highly-paid expatriates in
the programs was also needed to subsidize local workers who
contribute only a small part of their monthly wage to the
programs.

"It is reasonable for expatriates to contribute to the social
security programs because besides benefiting from the programs,
they also enjoy numerous facilities," he said.

Junaidi, Jamsostek's president, admitted to have asked the
manpower ministry to revoke the decrees but no response has been
given.

He said the company has "lost" around Rp 3 billion per month
from expatriates working in Indonesia and Rp 2.5 billion per
month from Indonesian overseas workers since the decrees took
effect in August 1998.

Minister of Manpower and Transmigration Al-Hilal Hamdi, who is
on a working visit to strife-torn Ambon, Maluku, could not be
reached for comment. (rms)