Jamsostek requires competent leaders to put a stop to theft

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.