S

ocial security providers called on the government to issue a regulation-in-lieu-of-law to recognize their existence following the government's failure to draft legislation on it as required by the 2004 National Social Security System Law.

The 2004 law set Oct. 19, 2009, as the deadline for the government and the House of Representatives to make five special laws and several government regulations to accommodate the existing four social security agencies and social security programs for the unemployed and the poor.

"Only the issuance of a regulation can salvage the national social security system *SJSN* by accommodating the four social security agencies," the president of state-owned insurance company PT Jamsostek, Hotbonar Sinaga, said in a discussion here on Monday.

A new law on social security agencies was mandated to integrate the social security programs for workers (Jamsostek), servicemen (Asabri) and civil servants (Askes and Taspen) into the national social security system.

Hotbonar added the four social security agencies had filed an official request for the government and the House to make the law on the social security agencies but so far they have not received a response.

"I don't think the regulation would include changes in the existing social security agencies to prevent some people from questioning their legality," he said.

He also said the new regulation should stipulate that existing agencies would continue their operations since they had met all nine basic insurance principles outlined in the 2004 law.

Hotbonar said the law was aimed at assisting the poor in the informal sector through the provision of an insurance scheme, similar to schemes that existing agencies have been providing for workers in the formal sector.

He said the existing agencies already had the capacity to provide services in healthcare, death, occupational accident and pension benefits.

"The operational funds for the agencies amounted to between Rp 130 trillion *US$13.8 billion* and Rp 140 trillion," he said, adding that the amount was sufficient for getting started.

He predicted Jamsostek would receive Rp 1,000 trillion in the coming 10 years by netting around 30 million participants, up from the current 8.7 million.