Nine firms withdraw from Jamsostek scheme

Apriadi Gunawan, The Jakarta Post, Medan

For the first time, nine private companies in North Sumatra have withdrawn from the social security programs due to their dissatisfaction with the compulsory insurance scheme for workers.

Local officials of state-owned PT Jamsostek running the insurance schemes for workers and of the provincial manpower and transmigration ministry office, which is in charge of enforcing social security law, traded accusations on the reasons behind the nine companies' exit from the social security programs.

Harris Albert Tampubolon, chief of Jamsostek's regional branch overseeing Aceh, North and West Sumatra, blamed the manpower and transmigration ministry office for recommending that the companies withdraw their participation in the insurance programs.

"The local manpower and transmigration ministry office should be held responsible for the nine cases because it has its own authority to enforce Law No. 3/1992 on social security programs for workers in the province," he said in an interview with The Jakarta Post here on Wednesday.

Toga Sitorus, head of the local manpower and transmigration ministry office, said the companies' withdrawal had a lot to do with their dissatisfaction with the insurance programs.

"We have recommended the nine companies withdraw from the compulsory programs because they have signed up to a better insurance program provided by a private insurance company in the city," he said.

He said his office was serious in enforcing the law and campaigning for insurance schemes in companies, especially oil palm plantation companies, in order to help provide better protection for workers.

"This year, we took three companies to court for failing to insure their employees in social security programs," he said, citing that the three companies were PT Garuda Mas Perkasa, PT Lucky Indah Permai and PT Kilang Mie Hun Sinar Baru.

The nine companies, mostly operating in the Pulau Berayan industrial zone, were PT Industri Karya Deli, PT Golgon, PT Victor Indoraya, PT Union Convectionary, PT Lambang Utama, PT Soci, PT Gemar Sukowati, PT Industri Pembungkus and PT Pacific Medan Industry.

Harris Albert called on the local manpower and transmigration ministry office to enforce the law consistently because all companies employing 10 workers or more were obliged to participate in social security schemes.

"Authorities should take action against employers manipulating their labor data or those seeking excuses to evade their financial obligations to the social security programs," he said.

According to the social security law, companies employing 10 or more workers were obliged to pay a sum equivalent to more than six percent of their workers' monthly salary in order to participate in the four schemes covering medical treatment, occupational accidents, death benefits and pension funds.

Togar J.S. Marbun, coordinator of the Indonesian Prosperity Trade Union (SBSI), called on local authorities to investigate the allegedly rife corruption and collusion between employers and government supervisors, saying that such practices were a reflection of labor exploitation in the province.

"Many employers have declined to participate in the social security programs for inadequate reasons and many others manipulate their labor data to reduce their financial obligations," he said.

Of 5.1 million workers in Aceh, North and West Sumatra, only 601,000 are enrolled in social security programs.

As at Jan. 2001, Jamsostek had collected Rp 129 billion in premiums and paid out Rp 74.7 billion in insurance claims for 39,600 workers.