ILO calls on Jamsostek to improve its transparency

BEKASI, West Java (JP): The International Labor Organization (ILO) representative office in Jakarta called on state-owned PT Jamsostek to be more transparent in managing funds it has collected, to win workers' confidence.

"A large proportion of workers are no longer confident in Jamsostek because of previously widespread corruption in the company," Uffe Elbaek, chief technical advisor said on Wednesday.

"Even a small number of workers in Central Java run their own social security programs," he added.

Uffe said Jamsostek should also help provide an affordable housing program for workers in industrial zones nationwide and pay attention to provide social services for jobless people.

"Jamsostek should put aside a small portion of its annual profit for jobless people and the construction of cheap and modest houses and dormitories in industrial zones in Jakarta, Surabaya, Medan and Batam, Riau. These types of programs will encourage workers to gain confidence and trust in Jamsostek," he said.

Jamsostek president Djunaidi said that so far, only 15 million of more than 60 million workers have been insured in social security programs. Jamsostek has collected more than Rp 11 trillion from over 45,000 small and large companies nationwide for programs.

But millions of other workers, especially those who were employed in the informal sector, have yet to be registered by their employers for social security programs.

"Jamsostek is unable to do anything to help workers if they are dismissed, become sick or are involved in occupational accidents in the workplace as they currently don't participate in the available programs," Djunaidi said.

He made the statement when handing over Rp 228 million in compensation for the family of an employee who was killed in a traffic accident in Batam, Riau, last November.

He appealed to companies participating in social security programs to become more transparent in unveiling data on their workers' cumulative salaries to allow workers to gain maximum benefits from the programs.

"Most workers are unable to enjoy maximum benefits from social security insurance programs as their employers don't unveil data on their employee's salary to Jamsostek in an attempt to reduce their obligatory participation in the programs," he said. Djunaidi said the more workers (and their employers) contributed to the social security programs the more benefits they would obtain.

"Workers should check on their monthly premium in the programs from their management so that they know the benefits they will obtain if they and their family become sick, or are involved in occupational accidents and retire," he said.

According to the 1992 law on social security, companies employing 10 or more workers are obliged to pay more than six percent of their workers's monthly salary for their participation in the four schemes of medical treatment, occupational accidents, death funds and pension funds. (rms)