Indonesian Political, Business & Finance News

Thousands of workers left unprotected in W. Java

| Source: JP

Thousands of workers left unprotected in W. Java

Nana Rukmana, The Jakarta Post, Cirebon

Of more than 1,270 companies employing a total of 95,000 workers
in the West Java regencies of Cirebon, Indramayu, Majalengka and
Kuningan, only 40 percent have participated in the obligatory
social security programs, an official says.

"Sixty percent of the private companies have yet to register
their employees in the social security programs, despite
continued campaigning by PT Jamsostek, a state-owned company
running the programs," Swasana Dwi Saputra, chief of Jamsostek's
local office, said here on Monday.

Swasana said most of the 900 handicraft companies, which
employed more than 50,000 workers in the region, had yet to
register their workers in the social security insurance schemes.

"We have asked the local manpower and transmigration office to
enforce the 1992 law on social security but, so far, no companies
violating the law have been brought to court," he said.

He said Jamsostek had no authority to enforce but officers of
the local manpower and transmigration office in their capacity as
civil servants had the investigative authority to charge
violating companies.

"Besides, workers in the region have yet to be made aware of
their rights for labor protection as it is stipulated by the
law," he said.

According to the law, private- and state-owned companies
employing ten workers or more, or paying salaries totaling Rp 1
million or more, are obliged to participate in the social
security programs. Companies contribute around four percent to
the programs while workers contribute around three percent of
their monthly gross salaries. The social security programs
comprise of health care, occupational accidents, death and
pension schemes.

Yoyon Suharyono, chairman of the Foundation for Workers and
Environment, said he was concerned with the absence of social
security programs for the handicraft companies's workers because
most companies had exported their products.

"Most handicraft businessmen have gained a huge annual profit
from their businesses but a major part of their workers have been
left unprotected in the basic labor insurance programs," he said.

Adjat Sudradjat, chief of Jamsostek's claim affairs section in
the region, said Jamsostek paid a total of Rp 6.1 billion claims
for workers participating in the programs during 2001.

"A major part of it (Rp 3.8 billion) was paid for workers
entering their mandatory pension age," he said.

Adjat said his company would enhance cooperation with public
health centers in the region to provide medication and health
care services for workers participating in the social security
programs.

"Such cooperation is much needed to provide health care
service to workers and their families," he said.

View JSON | Print