Jamsostek shows Rp 2t profit despite alleged irregularities

Jamsostek shows Rp 2t profit despite alleged irregularities

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.