Jamsostek eyes informal workers

Jamsostek eyes informal workers

The Jakarta Post, Jakarta

Amid regional autonomy, state-owned PT Jamsostek has begun
forging cooperation with regions to enlarge the coverage of the
social security scheme not only for workers in the formal sector
but also for those employed in the informal sector.

Jamsostek's president Achmad Junaidi said here on Monday that
Jamsostek had signed an agreement with a number of provincial and
regental administrations to register all workers employed in
development projects and other fields in the informal sector.

"This move will benefit all sides. All social security funds
collected from the informal sector will be deposited in local
banks and workers employed in the informal sector will be well
protected," he said.

He explained that Jamsostek has been eying workers in the
informal sector because of the slow growth of the formal sector
and the increasing number of development projects in regions in
line with the implementation of regional autonomy.

Under regional autonomy, a bigger part of the development
programs has been carried out by provinces and regions while the
formal sector's growth has slowed down due to the nonconducive
investment climate nationwide.

"We have to cover tens of thousands of workers employed in all
development projects carried out in provinces, regencies and
municipalities," he said, adding that Jamsostek has been also
eying workers in the formal sector who have not been registered
with the social security program.

He alleged that many companies had not registered the precise
number of their workers and their monthly salaries with Jamsostek
to avoid paying higher premiums.

With Law No. 3/1992 on social security programs, employers
cover a bigger part of their workers' premiums in the health
care, work-related accidents, death and pension schemes.

Junaidi said further that Jamsostek had targeted one million
more workers in the informal sector until 2008, especially in
resource-rich provinces such as East Kalimantan, Riau, Aceh and
Papua.

Under a tripartite agreement with labor unions and the East
Kalimantan provincial administration, Jamsostek has covered a
total of 170,000 more workers employed in construction projects
in Balikpapan and Samarinda.

Under the cross-subsidy principle, the government requires all
expatriates who are paid higher salaries in general, to join the
social security programs to help subsidize the participation of
low-income workers.

So far, Jamsostek has assets of Rp 33 trillion (US$3.6
billion) collected from 28 million workers, including those in
the informal sector.

Junaidi also said that a trauma center had been established in
Tarakan General Hospital to improve medical services for workers
in the province.

Jamsostek also handed over an ambulance and equipment to
support the trauma center.