Workers not aware of new insurance scheme

Workers not aware of new insurance scheme

JAKARTA (JP): Minister of Manpower Abdul Latief found
yesterday during snap inspections at two companies in East
Jakarta that the workers were unaware of the newly-introduced
insurance program, Jamsostek.

The new program, which is more comprehensive than the old one
called Astek, has a higher premium.

During the inspections, which caught the managements of the
two private companies by surprise, the minister found that most
workers were unfamiliar with their rights as well as the regional
minimum wage amount.

Latief also found that even though the workers of PT Traktor
Nusantara and PT Dyno Indria, both located in the Pulogadung
Industrial Estate, still kept Astek insurance cards, they had not
received membership cards from the new insurance program.

When asked by the minister whether he had received a new card,
Timbul Darma, an employee of the PT Traktor Nusantara, said "No
sir, I don't know what Jamsostek is all about".

Timbul told Latief he had been working in the tractor
assembling plant for four years and that his monthly salary was
Rp 160,000 (US$72), which the minister said meets the regulation
on the regional minimum salary of Rp 4.600 ($2) per day.

Accompanied by the Chief of Staff of the Jakarta Military
Command Mutiyoso and Col. Pamudji from the Jakarta Police, the
minister then proceeded to the nearby PT Dyno Indria, a glue
producing company.

Here Latief found that Jamsostek insurance cards had not been
distributed to the 360 employees because they were still being
processed by the company's personnel department.

"Have you had Astek cards?" Latief asked worker Siti
Musarifah, who had been working there for eight years and was
receiving a monthly salary of Rp 150,000.

"I don't have a card, sir," the woman answered.

The minister requested that the company distribute the cards
soon. He also called on the management to inform the workers
about Jamsostek.

"Basically, the two companies have carried out their duties
but the administrative work should be improved," Latief said.

The minister told the management of PT Dyno Indria and
reporters that his ministry welcomes any worker wishing to
register a complaint about the way an employer handles an
employee's rights.

"We urged them to do so and we will pay their transportation
fee," he said.

By law private companies are required to provide their workers
with social security cards. They may face a maximum fine of Rp 50
million or six months imprisonment for breaking or ignoring the
law.

The premium each company pays for insurance was increased when
PT Astek, the state-owned workers' insurance company, changed its
scheme from Astek to Jamsostek recently.

Reports said that since the premium increased many companies
have been reluctant to pay.

Data from the Ministry of Manpower says that there are now 48
companies being legally processed for breaking the law.

"In December we will announce all their names," the minister
said. (03/rms)