Jamsostek backs govt plan on bank, hospital
The Jakarta Post, Jakarta
As part of its altering image, state-owned insurance company PT Jamsostek will back the government's plan to establish a hospital and a bank for manual workers to help improve the social welfare of around 28 million low-income workers and their families.
Lukman Hakim, Jamsostek's finance director, said the decision was made as part of the company's internal reforms to improve its service to workers and their families.
"Jamsostek will set aside a part of its Rp 300 billion marginal profit in the 2001 fiscal year to help the health and banking program," he said at a workshop on the social security program for manual workers in the West Java town of Cipanas on Friday.
He explained the funds for the health and banking program will not be taken from its assets collected from workers but from its annual profits earned from its investments.
"We have requested the government allow us to hand over only 25 percent, instead of 50 percent of our 2001 profits as dividend so that we have tactical funds to support the planned establishment of a hospital and bank for manual workers," he said.
Jamsostek amassed Rp 2002 billion in profit in 2000 and Rp 300 billion in 2001 from its investment in numerous sectors. Until March 31, 2002, the company's assets amounted to Rp 17.4 trillion, mostly collected for the pension program under a social security scheme.
The hospital and bank program was initiated by Minister of Manpower and Transmigration Jacob Nua Wea in a tripartite cooperation with labor unions and the Association of Indonesian Employers (Apindo).
Lukman said that for the sake of efficiency, Jamsostek has thrown its weight behind the government's plan to purchase a nationalized bank for the proposed bank.
"It is cheaper and more efficient to purchase a taken-over bank than establish a new bank that would absorb at least Rp 3 trillion," he said.
Lukman pointed out the planned establishment of the labor bank was strategic as it would have 28 million workers and their families as prospective customers, which would back up the government's program to improve workers' social welfare.
"The bank will help finance Indonesians wanting to work overseas and the development of affordable houses and flats for workers at home," he said, citing many have sold their land, cows or other assets at low prices in order to work overseas.
He said that Jamsostek would support the government's plan to establish modest hospitals and clinics in industrial zones in Cilegon and Tangerang as pilot projects in the health program.
"If the pilot projects are found to be successful, such projects will be carried out in the remaining industrial zones in other provinces," he said.
So far, Jamsostek has also established four units of low-cost flats in Batam, Riau, to accommodate 3,000 single workers on the island.
Bambang Purwoko, Jamsostek's director of human resources and a lecturer of a postgraduate program at the University of Indonesia, said Jamsostek was carrying out a series of internal reforms to improve its image and its service to workers participating in the social security program.
He said the House was still reviewing the social security law to change Jamsostek's status from a limited company to a non- profit agency, which, with other state-owned insurance companies, would be under the jurisdiction of the president.
"With the new position, Jamsostek will unveil its accountability to the president and the public, no institution but the president will be able to interfere in its internal affairs and it will no longer be obliged to pay a part of its annual profit as dividend to the government," he said.
In the past, Jamsostek was a source of capital for government officials and parties and a nestbed of corruptors. So far, two former Jamsostek executives have been detained by the police over alleged abuse of power.