Wednesday, June 13, 2007

Workers at three state firms lack insurance

National News - April 04, 2007

Ridwan Max Sijabat, The Jakarta Post, Jakarta

State-owned insurance firm PT Jamsostek called on the State Ministry for State Enterprises on Tuesday to require three state-owned companies to register their employees with social security programs.

The three companies were state electricity company PT Perusahaan Listrik Negara, railway operator PT Kereta Api and postal service provider PT Pos Indonesia.

"The three state-owned companies should register thousands of their employees nationwide with Jamsostek to set a good example to private companies in their compliance with the 1992 Social Security Law," Aufa Azis Chan, chief of Jamsostek's Jakarta office, said here.

Of the 169 companies owned by the government, only the three companies are yet to insure their employees, he added.

Asked why Jamsostek had not brought the case to court, Aufa said Jamsostek did not have the investigative authority, while the Manpower and Transmigration Ministry was yet to enforce the law.

"We have already brought the three cases to the manpower and transmigration minister and to the labor commission at the House of Representatives... but no action has been taken so far," he said.

He said that in implementing the social security program, the participation of big companies was much needed as their contributions would be used to support small- and medium-scale companies through cross-subsidies.

The director general for industrial relations and labor standards at the Manpower and Transmigration Ministry, Suwito, said he had requested the Manpower and Transmigration Ministry to bring the cases involving the three companies to the cabinet ministerial meeting for further discussion.

He said the three companies had no reason not to register their employees with Jamsostek because social security programs were compulsory for private and state enterprises employing 10 workers or more.

Separately, chairperson of the House's labor commission Ribka Tjiptaning said her commission had repeatedly asked Manpower and Transmigration Minister Erman Suparno to sue companies that violated the law.

"The central government and local administrations should coordinate to enforce the law and impose sanctions on companies violating the law. Social security programs are necessary to protect workers because most workers are underpaid and are not covered by commercial insurance," she said.


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