Letter: Social security system

As a German citizen living for nearly 10 years in Indonesia, I can but agree to the statement in the article by Dinna Wisnu (The Jakarta Post, May 4, p. 6) saying: “A national social security system has been for various countries an asset rather than a liability when managed with accountability and transparency, given its contributory nature.”

Germany is for sure one of these countries where it has proved to be an asset. Our social security system in Germany, based on contributions from employers and workers, was established about 140 years ago, in the 1880s by the then Reich Chancellor Otto von Bismarck.

He designed it as an anti-socialist instrument, protecting workers in order to prevent them to join the growing Socialist Party of Germany. It developed into one of the main pillars of society and has survived two world wars, a number of economic crises and numerous attempts of neoliberal politicians to downgrade or even privatize it, though, of course, adjustments to modern times had to be made, but its character remains the same.

Nowadays, in another massive time of economic and financial turmoil, it still exists and provides protection and social stability in our country, unlike in other parts of the world. And our 1949 constitution still stipulates: Germany is a welfare state. And Social Democracy has become a mainstream ideology in Germany.

A comprehensive social security system was established in Germany at a time when per capita income was comparably not any higher than nowadays in Indonesia.  

A contributory system can start at low levels, when well-managed, preferably by the two parties that are paying for it, employers and workers, as it is the case in Indonesia. I agree with Wisnu: It’s time to discuss a suitable model for Indonesia.

Erwin Schweisshelm
Jakarta