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.