Laid off workers to get Jamsostek cash

Laid off workers to get Jamsostek cash

Ridwan Max Sijabat, The Jakarta Post, Jakarta

With hundreds of thousands of workers facing dismissal after the
government raises fuel prices in the near future, state insurance
company PT Jamsostek is ready to ease their pain.

Jamsostek will allocate Rp 350,000 in financial assistance to
every worker who is laid off as a result of efficiency measures
following the fuel price hike. The company president director
Iwan Pontjowinoto said the funds were aimed at helping the
workers seek or create jobs in the informal sector.

"Jamsostek is prepared for the worst-case scenario. Each
dismissed worker will receive Rp 350,000 to create jobs in the
informal sector. Of utmost importance is that they meet all the
requirements to get the financial assistance," Iwan said on
Saturday.

According to Ministerial Decree No. 210/2002, only workers who
have been registered with Jamsostek for at least one year and
received at least Rp 650,000 in monthly wages before being laid
off are eligible.

The workers are required to show a letter from the Central or
Local Committee of the Labor Dispute Settlements that say they
were dismissed and have never received similar financial aid in
the past.

Jamsostek made such a payment to thousands of workers
dismissed when sawmill and plywood companies trimmed their work
forces in Papua, Kalimantan and Sumatra recently.

From 1995 up to the first semester of this fiscal year,
Jamsostek has paid out a total of Rp 10.6 billion in financial
assistance for almost 49,000 dismissed workers.

Iwan said that dismissed workers were also allowed to withdraw
their funds from the pension benefit program if they had
participated at least five years in the program. The pension
benefits will be disbursed six months after dismissal.

"The payment of pension benefits is withheld for six months in
case a dismissed worker finds a new job during the six-month
period," Iwan added.

He complained that the ongoing economic crisis had affected
the social security programs, as evidenced by the decreasing
number of companies and workers taking part in the scheme.

Of 23 million workers registered with Jamsostek, only 7.5
million remain active, he said.

That has encouraged Jamsostek to expand its programs to the
informal sector, according to Iwan. With modified programs,
Jamsostek has netted thousands of people working in the informal
sector in Batam, Riau, Jakarta, Malang and other cities.

Separately, Indonesian Employers' Association (Apindo)
secretary-general Djimanto said hundreds of sawmills, textile
factories and other labor-intensive companies were expected to
lay off or dismiss workers as a result of the planned fuel price
increase.

"A number of sawmills in Papua, Sumatra and Kalimantan, and
dozens of textile companies in Bandung, Pekalongan and Jakarta
have halted their operations due to the fuel price hike in March
this year. Many other labor-intensive companies are expected to
do the same as prices of imported raw materials are increasing
and another fuel price rise is looming," he said.

Director General of Overseas Labor Employment I Gusti Made
Arka said the government would continue encouraging dismissed
workers to seek jobs overseas.

"Dismissed workers stand a good chance of working overseas,
and thus can survive the economic difficulties. Their experience
is an advantage," he said.

Job opportunities are still open for semi-skilled workers and
professionals in Malaysia, South Korea, Taiwan and the Gulf
countries, he added.