Jamsostek shows profit despite allegations
The Jakarta Post Jakarta
State-owned social security/insurance company PT Jamsostek, which has contracts with thousands of companies and workers nationwide, performed well last year according to their final public balance sheet that showed its total profits of almost Rp 2 trillion (US$243.9 million) in the 2002 fiscal year, after paying Rp 200 billion in dividends and taxes to the government.
Jamsostek spokesman H.D. Suyono said in a press conference here on Friday that the company made the profit from investments and the social security programs, and that it had shown its 2002 accountability report to the House of Representatives after it was audited by the Supreme Audit Agency (BPK).
"The annual profits will be reinvested to bring the total assets up to Rp 21.3 trillion in value and partly cover the company's annual operational costs," he said, while adding that the company's 2002 balance sheet had already been made public via the mass media.
He added that BPK was satisfied with Jamsostek's annual performance over the last three years.
Up to Dec. 31, 2002, a total of 21.6 million workers employed in 107,000 companies had participated in the four basic insurance schemes -- a health care program, pension funds, occupational accident program and life insurance. The company collected a total of 16.7 percent of the monthly wages in premiums from workers for his/her membership in the four programs.
The company has paid almost Rp 7 trillion in compensation and pension funds for five million cases and workers who have entered their mandatory pension age since the social security programs started in 1978.
There have been widespread media reports of "double accounting" at Jamsostek in 2002, but Suyono denied the accusations, saying the company had unveiled its balance sheet transparently both to the House of Representatives and to the public.
"Jamsostek is audited annually and it is ready to be audited again if the House suspects irregularities in the company, including its 2002 balance sheet," he said.
Alvin Lie, of the National Mandate Party (PAN) has called for an independent inquiry into the allegation regarding the company's double accounting practice.
"Jamsostek regrets such accusations because they are groundless. If Alvin has evidence of said irregularities in the company, he should hand it over to the House leadership or to the government for further investigation," he recommended.