T

he social security programs for workers need to be overhauled to provide social protection to the majority of people as well as to speed up economic development, according to labor unions and experts.

The Confederation of Indonesian Prosperous Labor Union (KSPSI), the Confederation of National Workers Union (KSPN) and the Confederation of All-Indonesia Workers Union (KSPSI) said all four social security programs — health care, occupational accident, old-age risk and death schemes — needed to be overhauled and added to the pension scheme, which, according to the 2004 national social security system, is compulsory.

They said the five programs, including the pension scheme, are mandatory not only for paid workers but also for those in the informal sector, including self-employed people. “The new law needs to be revised to impose sanctions against employers and workers failing to participate in the programs. This is aimed at increasing the number of the programs’ participants,” KSBSI chairman Rekson Silaban said.

The three confederations winning support from minority labor unions were of the same view that based on the social security principles of solidarity, portability, accountability and trust funds, state-owned PT Jamsostek has to be reorganized to become a trust fund institution managed by a tripartite management representing the government, employers and workers. They said Jamsostek had to give top priority to repairing the health care and old-age risk schemes to give access to all workers and their family members at all state-run general hospitals and enable them to enjoy their retirement.

The labor unions were of a similar view as employers, who want Jamsostek to concentrate on programs it can run professionally.

Indonesian Employers’ Association (Apindo) deputy chairman Djimanto said Jamsostek should focus on the occupational accident, old-age risk and pension programs and leave the health care program to a more professional provider like PT Askes, which cooperates with state and private hospitals because the current service given by Jamsostek under the health care program does not meet national standards.

“It would be better if the health care scheme was entrusted to a professional provider to give better services to all people, including civil servants, servicemen and their families. The government should pay its contribution, and all existing social aid in the health sector such as Jamkesnas and Jamkesda should be integrated into the health care scheme to give equal opportunity to the health care providers and to make medical services affordable,” he said.

Hasbullah Tabrani, a social security law expert at the University of Indonesia, said the National Social Security Board and all providers should assess and review the contribution employers and workers have to pay to all the five programs in an endeavor to give maximum benefits to participants.