Jamsostek pays Rp 6.9b in claims

TANGERANG (JP): The local branch of state-owned insurance company PT Jamsostek has paid claims worth Rp 6.9 billion (US$475,862) for 14,753 worker dismissal cases over the past six months, a company executive has said.

The branch office's chief, Apon Suryana, predicted Thursday that labor dismissal cases would surge this year compared to last year when Jamsostek recorded 22,721 cases with claims totaling Rp 7.8 billion.

Apon said at least 25,000 workers had been dismissed this year due to the economic crisis and the May riots.

The number is believed to be much higher because many companies have not reported dismissals for various reasons, he said.

"Some companies only called for the government's attention when their workers went on strike or rioted," he said.

Many companies have not given severance pay to workers they have dismissed despite a Ministry of Manpower regulation requiring them to do so, he added.

Apon said at least 83 of the 3,000 companies here had closed down or decreased their production capacities since January due to the economic crisis. Most of them are electronics and machinery companies. (41/jun)