Jamsostek requires competent leaders to put a stop to theft
Ridwan Max Sijabat, The Jakarta Post, Jakarta
Extremely hard hit by the drastic decrease in foreign investment as well as rampant corruption, the state-owned social security insurance company PT Jamsostek needs professional leaders to continue its internal reform and to save the public funds totaling Rp 23 trillion.
On the eve of Jamsostek's share-holder meeting scheduled for May 20, many political parties and government officials have proposed their "best men" to State Minister for State Enterprises Laksamana Sukardi to be appointed as president of the company or members of board of directors for the 2003-2008 period with their "laudable reasons" of salvaging the company's assets from big- time corruptors.
The outsiders' proposals have been met with strong opposition from labor unions, social security experts and labor observers who have called on the government to continue the internal reforms in the social security programs and stop external interferences in the company's internal affairs that have, so far, cost the company billions of rupiah.
Hikayat Atika Karwa, a labor activist from the Confederation of All-Indonesian Workers Union (KSPSI), lashed out at political parties and accused them of trying to loot the workers' funds in the company. He added that many parties had been eagerly eying Jamsostek in their attempts to raise campaign funds for the 2004 elections.
"The planned share-holders meeting should be quite decisive for Jamsostek's future. History will be repeated again if they appoint incompetent and unprofessional politicians to lead the company in the next five years," he said.
Atika said that Jamsostek, during its 26 years of operation, had been repeatedly used as a cash cow by certain groups. "Jamsostek has played a role as a source of financing for several parties to finance political campaigns and for corrupt officials during the New Order era. The crucial problem Jamsostek is facing is how to stop external interference both from political parties and government officials. And the core problem is not a matter of leadership but mainly a matter of internal reform in the company," he said.
He conceded that many political parties, including the Indonesian Democratic Party of Struggle (PDI Perjuangan), United Development Party (PPP) and National Mandate Party (PPP), have named a number of their people to be appointed to lead the company for the next five years.
"Besides, the crucial thing is that many labor unions have been affiliated with the political parties so that the labor unions have been misused to fight for the party's interests and place some of their people inside the rich company," he said.
He predicted that Jamsostek could face insolvency if the social security programs were not carried out transparently and if the country failed to lure more foreign investors back to the country to create more jobs.
"The social security programs can develop only if foreign investors come back to invest and employ more workers in the future," he said.
Jamsostek is concerned with worker welfare issues such as health care, occupational accidents, death and pension schemes. It has collected a total of Rp 23 trillion from 23 million workers employed by 106,000 companies across the country.
A. Junaidi, outgoing president of Jamsostek, acknowledged the existence of meddling by political parties and government officials in the company because of the absence of clear parameters between the government and political parties.
He said that Jamsostek should continue its internal reforms to repair its badly-tarnished image and to give maximum benefit for workers.
He concurred with Atika and said that the government should change the company's status into a trust fund from the present limited company (PT) status, and it should be directly under the President to prevent parties and government officials from interfering in the company's internal affairs.
He added that he had inherited 12 corruption cases that involved his predecessors when he was appointed as president in 2000 and nine of the cases had already been settled in court.
According to the internal reform concept, Jamsostek along with other state-owned companies running social security programs for civil servants (PT Askes), public transport workers (PT Jasa Raharja) and servicemen (PT Asabri) should be trust funds under an umbrella group controlled by the President.
With such an internal reform, the President would be expected to appoint professional and career executives to lead the company so that it could focus on how to provide better service and maximum benefits for the social security programs' participants, he said.