Thu, 05 Oct 2000

Jamsostek increases workers' compensation

JAKARTA (JP): The government has issued a new regulation stipulating that state-owned insurance company PT Jamsostek increase its occupational accident and death compensation for workers.

Junaidi, newly-appointed president of PT Jamsostek, said the new ruling, No. 83/2000, which was issued on Sept. 25 to replace a 1998 regulation, would improve social security benefits and protection for workers.

The maximum medical compensation due to a work related accident would be increased from Rp 4 million to Rp 6.4 million.

While a worker is recuperating from an accident, he or she is entitled to receive full wages for the first four months, 70 percent of wages for the second four-month period and 50 percent afterwards.

Compensation for a worker permanently handicapped due to an accident would rise from 70 percent of 60 months wages, to 70 percent of 70 months wages.

A disabled worker would also be entitled to receive a monthly stipend of Rp 50,000 for the next two years, an increase of Rp 25,000 from the previous amount.

In the event of death due to a work related accident, the next of kin would receive a total of 60 percent of 70 months wages, up from the 60 percent of 60 months wages.

"The significant increase in accident and death compensation will be helpful for workers and their families," Junaidi told journalists.

Junaidi said the regulation also covers compensation for deaths not related to the work place.

"According to the new regulation, Jamsostek will provide Rp 3 million and a burial fee of Rp. 600,000," he explained.

Junaidi urged workers to coordinate with their employers to ensure they gain the full extent of benefits.

"Many workers who were hospitalized due occupational accidents do not gain compensation from the company due to a lack of coordination with their employers," he said, while reminding that the regulation was effective only for workers participating in the social security program (jamsostek).

The company claims that this year it is has already paid out Rp 71.6 billion in compensation for 67,328 occupational accidents and Rp 23.9 billion in compensation for the families of 9,968 deceased workers.

The company has collected a total of around Rp 11 trillion from more than 15 million workers participating in jamostek.

Junaidi said management has set up a team to tackle the company's uncollectable receivables and corruption cases, which has caused more than Rp 600 billion in material losses to the company.

"The small team has been given six months to tackle the uncollectable receivables and financial leaks in the company," he said.

He conceded that the company had receivables worth hundreds of billions of rupiahs in a number of companies, including in the defunct PT Bank Pacific, PT Ramako, operating MacDonalds in Indonesia, and Bank Tabungan Negara, but they could not be collected for financial reasons.

He said the team was given authority to seek solutions to the uncollectable receivables through the courts.(rms)