Only 890 firms join Jamsostek

TANGERANG: Only about 28 percent of a total of 3,214 companies in Tangerang have registered their workers with Jamsostek (state workers insurance).

Jamsostek Tangerang branch chief Achmad Ansyori said that there were 3,214 industrial firms in Tangerang, but as of this month only 890 firms had joined the Jamsostek program amounting to a total of 42,969 workers.

But he said that of the 890 firms, some 320 had not paid their monthly premiums during the last few months. Some of them had not made any payments for the past for five months.

"The management of those companies lack awareness of their obligation. Workers are entitled to such insurance and their companies should not disrupt it by not paying their premium contributions," he said.

According to Law No. 14/1992 on Jamsostek and Government Regulation No. 14/1993 that outlines the program implementation, a company that employs more than 10 workers and pays Rp 1 million or more in total monthly salaries for its workers is obliged to join the Jamsostek program.

Violators face a six-month prison sentence or Rp 50 million in fines and those who are late in paying the monthly premium will be fined as much as 2 percent of the total monthly contribution.--JP