Jamsostek to increase compensation
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.