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.