Jamsostek explains

Jamsostek explains

In response to Mr. Johni Hutabalian's letter in the Dec. 17
edition of The Jakarta Post titled "Labor Insurance" (from
Kompas), we would like to give the following explanation:

1. Government Regulation No. 14 of 1993 determines the insured
amount for participants in the state-owned social security
company's occupational accident insurance, life insurance,
retirement funds and health insurance.

2. The executive body of PT Jamsostek is continuously
endeavoring to increase the insured amounts so that our programs
benefit those it insures. But our efforts to do this are governed
by the company's capacity and its financial development. For
example, the insured amount for life insurance has been increased
five times since the establishment of Astek until its present
program in Jamsostek. The rates have increased from Rp 170,000 to
Rp 1,200,000. The company is now calculating another increase in
the insured amount to be proposed to the government.

3. The amounts paid to the victims of the Garuda plane at
Sibolangit varied. The total indemnity payment for the families
of the 45 victims amounted to Rp 3,566,256,156. Based on the
victims' wages reported to PT Jamsostek, the victims' families
received payments according to the regulations in force, i.e. 60
percent times 60 months of salary = 36 months of salary.
Therefore, the payment varied from Rp 10 million to Rp 572
million.

4. In its management of funds, PT Jamsostek adheres to
Government Regulation No. 28 of 1996 on the Management and
Investment of Jamsostek Program Funds. Of the profits from the
investment of funds collected, a certain amount is put aside for
dividends (the government), 30 percent is allocated to projects
that help our participants (like workers' houses, training,
training of handicapped workers, worker safety and health,
scholarships for workers' children, free medical costs for
workers and aid to the model workers), while the remainder is
used for the development of small businesses, pre-welfare funds,
etc. Thus, PT Jamsostek has never used funds from contributions
outside the program. Workers' funds are safely saved and are
always evaluated for their adequacy.

5. Your opinion that retired employees of PT Jamsostek get
very high pensions compared to Jamsostek participants is very
unfounded. Everything has been regulated in Law No. 11 of 1992 on
Pension Funds and Government Regulation No. 76 of 1992 on
Employers' Pension Funds. With reference to the two regulations,
PT Jamsostek determined the Regulation on Pension Funds of PT
Jamsostek's employees.

R. IRAWAN

Public Relations

PT Jamsostek