T

he government has proposed the transformation of state-owned insurance company PT Askes to provide a national health care program by 2014, with an initial contribution of Rp 2 billion (US$234,000).

Finance Minister Agus Martowardodjo unveiled the proposal before the resumption of deliberations over the long-awaited social security and insurance bill (BPJS) at the House of Representatives on Wednesday.

The proposal is in keeping with the recent agreement between the government and the House regarding the transformation of Askes and three other companies: PT Jamsostek, PT Taspen and PT Asabri, into short- and long-term social security providers.

The government and the House agreed other measures, such as disallowing downsizing; ensuring the companies’ investment programs; deploying a prudent approach in the transfer of the companies’ assets to the non-profit providers; and to complete the transformation within 24 months.

“The government proposes the transformation of PT Askes in accordance with the agreement reached with the House, and to realize the health care program’s provisions within two years. The government will work hard to provide all necessary health-related infrastructure, including hospitals, medical equipment, and specialists in all regencies by the end of 2013, so that everyone can enjoy the health care benefits by January 2014,” said Agus.

He said the government plans to allocate Rp 2 trillion from the 2013 budget for infrastructure development and reorganizing PT Askes into a non-profit institution, as required by Law No. 40/2004 on a National Social Security System.

Agus added that the government does not have the financial capacity to run all five social security programs simultaneously, and confirmed the occupational accident and death benefit programs are next on the agenda. President Susilo Bambang Yudhoyono, in a recent consultative meeting with the House’s leadership, said that the transformation of the four insurance companies would be carried out over 20 years.

According to Law and Human Rights Minister Patrialis Akbar, who accompanied Agus to the meeting, “The government has no alternative but to review and amend all regulatory laws concerning the four companies to comply with the 2004 law and the new BPJS.”

Also attending the meeting were the Administrative Reforms Minister Evert Ernest Mangindaan; Social Affairs Minister Salim Segaf Al Jufri; National Development Planning Minister Armida Alisjahbana; the deputy state minister for State Enterprises Perikesit Suprapto; and the director general of labor supervision Mudji Handojo, who was representing Manpower and Transmigration Minister Muhaimin Iskandar, who was reportedly ill.

The government agreed with the House special committee to hold six more meetings to complete deliberations on the bill and aim for its endorsement on Oct. 20, 2011.

Patrialis said the two months will allow the government and the special committee to resolve remaining issues concerning the changes to the companies, such as sanctions, and the recruitment procedures for their executive and supervisory boards.

The 30-member special committee supported the government’s decision to make the health care program the immediate priority in implementing the five social security programs, provided that the full allocation from the state budget for the public and regional insurance schemes (Jamskesmas and Jamkesda) is transferred to the new health care scheme.