Reshuffle at Jamsostek questioned

Reshuffle at Jamsostek questioned

The Jakarta Post, Jakarta

Two major labor unions have questioned the recent reshuffle at
state insurance company PT Jamsostek, which they said was
conducted abruptly and not transparently.

The Confederation of the All-Indonesian Workers Union (KSPSI)
and the Confederation of the Indonesian Prosperity Labor Union
(KSBSI) said separately here on Wednesday that they knew about
the recent reshuffle from local media as they had not been
consulted by the government over the appointment of the company's
new board of directors.

KSPSI chairman Jacob Nuwa Wea said the government could not
decide to reorganize its board of directors without consulting
any of the seven labor unions or the Indonesian Employers
Association (Apindo), which are main stakeholders and have their
own representatives on the company's board.

"We are suspicious of political motives behind the abrupt
reshuffle. We have delivered a letter to President Susilo Bambang
Yudhoyono, questioning the way the State Minister of State
Enterprises carried out the reshuffle," he said.

Unlike the previous reshuffle, he said, the new board members
were not screened prior to their inauguration, nor were they
familiar with the social security programs run by the company.

KSBSI chairman Rekson Silaban accused State Minister of State
Enterprises Sugiharto of committing corruption, collusion and
nepotism in appointing the new board members.

"What expertise do these five outsiders have that makes them
suitable leaders for Jamsostek? Iwan Pontjowinoto, appointed as
Jamsostek's president, is only an IT expert. Does he have the
competence to preside over Jamsostek? Tjarda Muchtar, appointed
as operational and service director is a Golkar politician and a
close friend of Manpower and Transmigration Minister Fahmi
Idris," he told The Jakarta Post.

He also questioned the appointment of Iskandar Rangkuti as
director of investment and that of Andi Achmad as human resources
and general affairs director, because the two lacked the
necessary experience and expertise, according to him.

Nuwa Wea and Rekson were of the same opinion that the presence
of the newcomers on the board would have a negative impact on the
company's performance.

They denounced the decreasing number of workers registered
with social security schemes, which the minister said was the
main reason for the reshuffle.

"The minister does not understand the prolonged economic
crisis, which has made more and more employers unable to pay
their workers well and register them with Jamsostek. Whoever
presides over Jamsostek, the number of social security program
participants will continue to decrease because many employers
have dismissed their workers amid economic hardship," he said.

Nuwa Wea, also a former manpower and transmigration minister,
called on the government to enforce Law No. 40/2004 on the
national social security system and review Law No. 3/1992 on
Jamsostek to convert PT Jamsostek into a nonprofit organization,
otherwise it would continue to be the subject of extortion by
government officials, political parties and mass organizations.

"Jamsostek's assets worth almost Rp 34 trillion (about US$3.7
billion) belong to workers and not the government and, therefore,
it cannot be treated as a state enterprise. The government should
contribute regularly to the social security programs to show its
political commitment to protecting workers," he said.