Fri, 02 Jul 2004

Jamsostek eyes 1.5 million RI workers overseas

Ridwan Max Sijabat, The Jakarta Post, Jakarta

After securing the membership of 17,000 expatriates working in Indonesia, state-owned social security company Jamsostek, has targeted more than 1.5 million Indonesians employed overseas.

Jamsostek's president Achmad Djunaidi told The Jakarta Post here on Thursday that his side was still discussing with the Ministry of Manpower and Transmigration the participation of Indonesian workers overseas in its social security programs.

"Both sides have principally agreed that migrant workers should be members of Jamsostek's social security programs for their own protection while overseas, as well as to financially strengthen Jamsostek," he said.

He added that Manpower and Transmigration Minister Jacob Nuwa Wea, was expected to issue a ministerial decree to revive the 1995 decree on the participation of Indonesian workers overseas in social security programs.

The 1995 ministerial decree was lifted in 1999 for the main reason that Indonesian workers employed overseas were protected under a commercial insurance scheme.

The minister recently issued Ministerial Decree No. 67/2004 in April to bring back the 1995 decree requiring all expatriates working in Indonesia to enroll in social security programs. The decree was lifted in 1999, as most of the expatriates were already registered with similar -- and perceivably better -- social security programs in their home countries.

Nuwa Wea said recently that enrolling in a social security program was obligatory for Indonesian workers employed at home and overseas, and expatriates working in Indonesia.

"The compulsory participation is aimed at ensuring social security programs are cooperative and cross-subsidizing. The more workers that participate in the programs, the stronger the company's assets will be, and the more benefits the workers will receive," he said.

Employers and labor unions have opposed Jamsostek's status as a state-owned company, saying the government should contribute to the social security programs as a main stakeholder to show its responsibility to workers' protection.

The House of Representatives is still reviewing the 1992 social security law to change the social security programs into a trust fund that would be managed by an independent agency directly under the President.

Djunaidi explained that Jamsostek would fully protect Indonesian workers overseas, particularly those in abusive situations.

"Jamsostek would compensate workers who were not paid, abused by their employers or injured in a workplace accident. It wwill also offer life insurance," he said, adding that Jamsostek would reopen its branches in the Middle East and Malaysia.

Meanwhile, labor exporters expressed appreciation of the government's plan to enroll Indonesian workers overseas in social security programs, saying it would provide them with better protection.

"As long as the workers have no objection to participating in social security programs, labor exporters will support it, although they would have to pay for it," said Husein Alaydrus, chairman of the Indonesian Labor Exporters Association (Apjati).

Around 1.5 million Indonesians are working overseas. The majority are employed as domestic helpers in the Middle East, Hong Kong and Malaysia, contributing around US$1 billion annually to Indonesia in foreign exchange earnings.