Jamsostek's president suspended in effort to resolve long crisis

The Jakarta Post ,  Jakarta   |  Mon, 01/22/2007 3:31 PM

Ridwan Max Sijabat, The Jakarta Post, Jakarta

The board of commissioners of state-owned workers' insurance company PT Jamsostek has suspended the company's president director in an effort to solve an internal rift and a prolonged leadership crisis.

Iwan P. Pontjowinoto is being replaced temporarily by director of operations and services Andi Achmad, who will not be allowed to make important decisions or set policy.

Syukur Sarto, a member of the board of commissioners, confirmed over the weekend that the decision was made following a two-day meeting held to respond to renewed protests by the company's workers calling for Iwan's replacement.

""We recommend that Iwan prepare his own defense to a number of mistakes and wrongdoings the workers have accused him of committing during his leadership over the past one-and-a-half years.

""If he is proven not guilty he will retain his position. He will be replaced if he did do something wrong,"" he said.

Jamsostek, which handle nearly Rp 40 trillion (US$4.44 billion) in workers' pension funds, has 20 days to call an extraordinary shareholders meeting to name a new president director, according to the company's internal regulations .

Following the employees' first rally last July, the government pledged to audit Iwan's leadership and announce its result within three months, but it was not until after last week's renewed protests that action was taken.

Workers had proposed a no-confidence motion demanding Iwan be replaced for his alleged involvement in a graft case relating to a company IT project; the management's decision to appoint two private securities companies as new brokers for the company on the stockmarket; and the unethical treatment of numerous employees during his tours of the company's branches.

The second rally on Friday followed a recent in-house survey employees said was intended to assess their loyalty to Iwan and approval of the reshuffle of the board of directors approved by the government during last week's shareholder meeting.

All eight of the company's regional offices supported the dismissal of Iwan, with a call for the board of commissioners to help mediate the internal rift.

Iwan was not available for comment.

Jamsostek Workers Union hailed the decision as a temporary solution that would calm down the situation in the company.

""The government should have a shareholder meeting to try Iwan and replace him immediately to create a conducive climate in the company,"" said workers union leader Abdul Latief Algaff.

State Minister for State Enterprises Sugiharto said the government could not replace Iwan just because of the rallies, saying such a move would set a bad precedent.

""The government will set up a small team to assess and audit Iwan's leadership and look into all the cases brought against him by the workers,"" the minister said, after accompanying Vice President Jusuf Kalla to a meeting at the Manpower and Transmigration Ministry on Friday.

Sugiharto denied allegations that he would not replace Iwan because the men were friends and said the audit would be conducted objectively and transparently.

Copyright © 2008 The Jakarta Post - PT Bina Media Tenggara. All Rights Reserved.