Jamsostek to increase compensation

Ridwan Max Sijabat, Jakarta

State-owned social security company PT Jamsostek is to raise by at least 10 percent compensation for workers who experience work- related accidents.

Jamsostek president Achmad Junaidi said that workers who are injured at the workplace will have the right to receive "first class" medical services at state and private hospitals without financially burdening either their families or employers.

"Besides preparing trauma centers in general hospitals in numerous cities and industrial zones across the country, Jamsostek will upgrade the medical service to 'Class A' from the current 'Class B' made available at all hospitals, including private hospitals," he told a hearing with House of Representatives Commission VII on labor and social affairs here on Wednesday.

Junaidi said Jamsostek would also raise the compensation for those killed in work-related accidents by 10 percent to 4,620 percent of their own gross monthly salaries from the current of 4,200 percent.

"Jamsostek does not want any worker to die due to occupational injuries and it will continue to establish more and more trauma centers in hospitals to provide preliminary medical care to reduce fatalities at the workplace," he added.

Besides running programs for work-related accidents, health care, bereavement and pension programs, Jamsostek in cooperation with state and private hospitals has established 26 trauma centers to minimize the impact of occupational accidents and fatalities in industrial zones across the country.

Jamsostek data reveals that the number of work-related accidents decreased to 20,937 in the first quarter of 2004 from more than 36,000 during the same period in 2003.

Many legislators have questioned the government's commitment to providing social security programs for workers since only around 25 percent, or 28 million, of almost 120 million workers are enrolled in the programs.

In addition, many other companies, foundations and organizations have enrolled only a small percentage of their employees in the social security scheme and do not report the actual gross monthly salaries of their workers to avoid paying higher premiums. Between 4 percent and 7 percent of the workers' insurance premiums must be paid by employers, according to the law.

Jamsostek's total assets of Rp 23 trillion are invested in state banks, the stock market, government bonds and middle-term notes, but it has rejected all suggestions that it merge with other state-owned insurance companies to form a larger national social security (SJSN) provider for all people because a part of its funds are raised from employers, who are reluctant to cross- subsidize the unemployed, civil servants and servicemen.