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)