Wed, 17 Dec 1997

Labor insurance

From Kompas

As a member of the Astek/Jamsostek (labor insurance) program, I would like a clear explanation of a number of things. According to articles six and 25 of Law No. 3 of 1992, the objective of the collection of labor insurance funds is to enhance the welfare of Indonesian workers. If the Jamsostek funds are so huge, is it still appropriate to pay only Rp 1.2 million in compensation for cases of death?

Is it appropriate to limit the reimbursement of medical costs of Astek/Jamsostek members to Rp 3 million in cases of occupational accidents?

The two cases above should be given priority over business investments which are enjoyed by people who are not entitled to compensation. Those who have contributed to the funds will have retired and died without the opportunity to enjoy the funds they contributed to for their welfare.

What was the payment formula for the Rp 100 million given to families of six people who died in the Garuda plane crash at Sibolangit? Huge amounts are paid to Astek/Jamsostek retired staff compared to those who are insured under the program. Does the money not belong to the insurance participants?

I have read the opinions of experts on the Astek/Jamsostek cases like the ones described above. They have proposed the establishment of an investigation committee or the launching of a state audit agency team. I think that such an investigation would only incur additional costs to the state. It is already clear that the money was used contrary to the law cited above.

Even if there was an approval by the House of Representatives (DPR) to use the money, it is still inadequate.

Expenditures should also be agreed to by the All-Indonesia Workers Union (SPSI) that represents Indonesian workers -- although I understand that the SPSI's loyalty is to the manpower ministry rather than the workers represented. However, such a procedure is more appropriate than only complying with the requests of the minister or even the President.

I can't imagine why Astek/Jamsostek provided the Rp 3.1 billion to finance the discussions of the manpower bill while its cost had been provided for by the government.

JOHNI HUTABALIAN

Jamsostek member 95JP0204623