Nine firms withdraw from Jamsostek scheme

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withdrawn from the social security programs due to their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.