Indonesian Political, Business & Finance News

Social security claims made simplified

Social security claims made simplified

JAKARTA (JP): Filing insurance claims through the government- sponsored Workers Social Security Program (Jamsostek) is expected to become simpler and faster once PT Jamsostek has implemented its new system this month.

The company's spokesman, Sukron, said most claims will now be decided upon at the regional offices to be opened in 10 cities.

Each office will have the authority to make decisions and settle claims without approval from the head office, he said at a recent meeting.

AT the meeting it was agreed that the head office will delegate more of its authority to the regional offices in managing the program, which covers pension funds, life insurance, occupational accident insurance and medical treatment insurance.

"The head office's task will only be to monitor and control the regional offices and file reports with the government and the State Audit Agency," he said.

PT Jamsostek, which changed its name from PT Astek last December, has appointed eight officials to head its regional offices. They are:

* Linggarjati, head of the Regional Office I based in Medan, overseeing Aceh, North and West Sumatra.

* Sunaryo Sumarsudi, head of the Regional Office II based in Palembang, overseeing Riau, Bengkulu, South Sumatra and Lampung.

* Hendriarso, head of the Regional Office III based in Jakarta, overseeing branches in the city.

* Indra Haryadi, head of the Regional Office IV based in Bandung overseeing West Java.

* Syi'aruddin Amin, head of the Regional Office V in Semarang, overseeing Central Java and Yogyakarta.

* Odang Muchtar, head of the Regional Office VI in Surabaya, overseeing East Java, Bali, East and West Nusatenggara, and East Timor.

* Andi Achmad, head of the Regional Office VII in Balikpapan, supervising Kalimantan.

* Ismail Borachima, head of the Regional Office VIII in Ujungpandang, overseeing Sulawesi, Ambon and Irian Jaya.

Sukron said the decentralization program is aimed at making the company's operations more efficient and reducing unnecessary red tape in dealing with insurance claims.

He said the target is for every claim to be dealt with and processed in one day, instead of days or weeks as is the case now.

Sukron said PT Jamsostek is continuing to encourage more companies to enlist their workers in the social security program.

Imprisonment

The 1992 Law on Workers Social Security states that companies which employ 10 workers or more must join. Violators face a maximum of six-months imprisonment and a Rp 50 million fine.

By last month, PT Jamsostek, the only company that runs a comprehensive social security program in Indonesia, had enlisted the participation of 60,049 companies employing 9,171,090 workers.

The government estimates that there are at least 140,000 companies, employing 22 million workers, which must abide by the law.

The government has already begun prosecuting violators of the law, Sukron said, adding that 198 suits have already been brought against companies in North Sumatra, Jakarta, West Java and East Java.

"Some of the cases have already been tried in court," he said.

The premium paid for Jamsostek amounts to 5.7 percent of a worker's salary, of which 3 percent is paid by the employers and the rest taken from the workers' wages.

As of last month, Jamsostek's total revenues from premium payments reached Rp 3.2 trillion ($1.4 billion). (rms)

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