Jamsostek earns revenue mostly from bank deposits
Jamsostek earns revenue mostly from bank deposits
Rendi A. Witular
The Jakarta Post
Jakarta
Please see editing notes in yellow below
State-owned insurance firm PT Jamsostek announced on Wednesday
that it had booked Rp 1.64 trillion (US$195 million) in
investment revenue, mostly bank interest yield, during the first
semester of this year.
During a hearing with House of Representatives Commission VII
for social affairs, Jamsostek president Ahmad Djunaidi said that
in the first half of the year, the company had invested Rp 23.1
trillion, or 95 percent of its total assets, amounting to Rp 24
trillion.
He explained that during the period, the company invested most
of its assets, around Rp 13.8 trillion, in bank deposits that had
generated interest totaling Rp 917 billion.
During the period, Jamsostek also invested Rp 7 trillion in
bonds and other valuable certificates, Rp 1.59 trillion in the
stock market, Rp 150 billion in mutual funds, Rp 32 billion in
the real sector and Rp 533 billion in property.
It earned Rp 610 billion from bonds and valuable is term
correct? certificates, Rp 95 billion from the stock market, Rp
150 billion from mutual funds, that's the same as the total
investment! Rp 1 billion from the real sector and Rp 16 billion
from property.
Last year, Jamsostek, which has contracts with thousands of
companies and workers nationwide, recorded a net profit of around
Rp 2 trillion after paying Rp 200 billion in dividends and taxes
to the government.
As of the end of June this year, a total of 21.6 million
workers from 110,726 companies had participated in the firm's
four basic insurance programs: health care, pension funds, an
occupational accident program and life insurance.
The company collected a total of 16.7 percent of the monthly
wages in premiums from workers participating in the four
programs.
The company has paid out almost Rp 7 trillion in compensation
and pensions for five million cases and to workers who have
reached the mandatory pension age, since social security programs
started in 1978.
Jamsostek is legally a limited liability company, but, in
order to boost the company's earnings, the government has
proposed to the House a change in the company's status to that of
a nonprofit-oriented institution.
As such, it would have no obligation to pay dividends to the
government, its largest shareholder. The company would also be
exempted from paying taxes.
The government would in turn be required to contribute to
Jamsostek programs to show its commitment to providing protection
for workers.
Under the proposal, Jamsostek would be controlled by an agency
representing the government, labor and businessmen, with direct
supervision from the president.