Jamsostek books profit

Jamsostek books profit

From Bisnis Indonesia

As a member of Jamsostek (a workers' social security scheme),
I read with interest in this paper of Aug. 1, 2001 a news story
about Jamsostek booking a profit of Rp 321 billion. Jamsostek has
contributed Rp 203 billion of this amount to the state budget and
a further Rp 101 billion as a dividend to the government.

As far as I know, Jamsostek collects compulsory contribution
fees from private and state enterprises on behalf of employees or
workers as participants in the scheme, in order to secure the
welfare of employees or workers as stated in its program.
Jamsostek manages the accumulated funds in such a way that they
grow for the benefit of the participants when they retire or have
an accident, and also for the benefit of their heirs should they
happen to die before their retirement.

Theoretically, when prosperity prevails, the salaries of
employees are high and the number of participants in a workers'
social security scheme is large, the social security funds
collected and managed should produce greater benefits to its
members. For example, in Canada and some other prosperous
countries, insurance schemes like Jamsostek also give security to
people who have become unemployed because of being laid off, for
example.

It is therefore very ironic that the profit made from the
funds collected from workers' contribution fees is not utilized
to improve the benefits of the program, but has to be shared with
the government as a dividend.

Jamsostek members would be very happy if, for example,
Jamsostek raised the present death compensation and burial
expenses of Rp 3 million and Rp 600,000 respectively.

May the new government realize this and ensure that Jamsostek
sticks to its role of providing financial security for the
welfare of employees and workers.

RIDJANI NOER

Member no. 93J50026215