Jamsostek has new board of directors

Jamsostek has new board of directors

The Jakarta Post, Jakarta

State Minister for State Enterprises Sugiharto replaced on Monday
the board of directors of state-owned insurance company PT
Jamsostek, asking them to increase the number of policy holders
and improve the welfare scheme for them.

"I expect the new management to widen Jamsostek coverage to
workers nationwide," he said after installing the new board.

Iwan P. Pontjowinoto was named Jamsostek president director,
replacing Achmad Djunaidi. Previously, Iwan served as a deputy to
the state minister.

Sugiharto told the new management that apart from increasing
assets and profit, the insurance company should also help the
government's program in the provision of a social security scheme
for workers.

"Jamsostek has fallen short of its target for the past three
years," he said.

Data from the Ministry of Manpower and Transmigration shows
that only 60 percent of an estimated 40 million workers in the
formal sector are enrolled in the social security program.

Jamsostek had targeted an increase in its policy holders by
1.91 million, 2.5 million and 1.82 million from 2001 to 2003
respectively, but only managed to add 1.75 million, 1.73 million
and 1.59 million respectively.

Iwan said the new management would continue to seek every
available opportunity to raise the number of participants among
the country's workers.

Jamsostek's previous management succeeded in enrolling 17,000
expatriates in its social security program and is eyeing another
1.5 million of the country's overseas workers.

"We will also manage our funds better, avoiding putting them
in only high-return investments," Iwan said. "We will, for
example, focus on providing housing loans for our participants."

Jamsostek disbursed Rp 295 billion (31.7 million) last year to
help workers buy low-cost houses and build low-cost apartments in
industrial zones in North Sumatra, Riau, Jakarta and South
Sulawesi. The company plans to build more cheap apartments in
Jakarta and its outskirts, Surabaya and North Sumatra.

The company will pay a 8.5 percent interest rate for its
pension funds -- 2.5 percent higher than commercial banks -- on
the back of Jamsostek's net profit of Rp 3.3 trillion from its
investments last year.

Jamsostek's current assets stand at Rp 33 trillion collected
from 23 million workers, with 80 percent of Jamsostek's total
assets worth Rp 33 trillion derived from pension funds.

However, the firm was recently under fire for investing Rp 100
billion worth of bonds in the now defunct Bank Global.

Jamsostek's new board of management

Position New board Old board

President director Iwan P. Pontjowinoto Achmad Djunaidi

Investment director Iskandar Z. Rangkuti Samuel Tobing

Financial director Tjarda Muchtar Indra Haryadi

Operations director BM Tri Lestari Armon Arleg

Human resources & general

affairs director Andi Ahmad BM Tri Lestari

Source: Office of the State Minister for State Enterprises