Nani Afrida, Jakarta – During the year ending September 2009, more than 1 million people have joined the state workers' insurance firm PT Jamsostek's list of non-active members as the impact of the global economic downturn has triggered job losses and dismissals.
Non-active members mean they no longer have regular income to pay the monthly premium, but are still entitled to Jamsostek's benefits such as pension fund payments.
With these figures, total non-active members as of September reached 19 million, up from 17.9 million from the same period last year, said Jamsostek president director Hotbonar Sinaga on Monday. By contrast, members of Jamsostek listed as active in the same period stood at 8.2 million.
"Many companies had to lay off their employees after their businesses were hit by the global economic crisis," Hotbonar told reporters after a hearing in the House of Representatives in Jakarta.
The global economic downturn is slowing down Indonesia's economy, estimated to grow by 4.3 percent this year – appreciably slower than the 6.1 percent growth recorded a year earlier during 2008.
Dismissals have mostly occurred in labor-intensive, export-oriented manufacturing companies weakened by the fall in the demand for exports. "Only active members pay their routine premiums while the rest could not pay their premiums because they have no jobs," he said.
Jamsostek collects premiums from its members until retirement age, and in return covers payments for accidents, health costs and pensions.
Commenting on the benefits of laid-off workers, Hotbonar said that even when still aged below 55, they are entitled to cash from their pension fund as long as they have been a member for at least five years.
But for those with less than five-years membership behind them, they cannot cash in their allowances but the amount contributed will be accrued once they get another job.
However, Hotbonar refused to go into details as to how much in claims the company had to pay out for these non-active members. "We predict that the total claims for pension benefit could increase by 20 percent compared to last year," Hotbonar said.
Previous reports showed that as of September, Jamsostek had paid Rp 5.39 trillion (about US$576 million) in total pension benefits and Rp 4.37 trillion in other benefits.
Meanwhile, Jamsostek also reported that its funds invested in bonds, stocks, deposits, mutual funds and others now totaled Rp 77 trillion, higher than the full-year target of Rp 72 trillion.
"Bonds contributed 46 percent or Rp 35.46 trillion of the total invested funds," Jamsostek investment director Elvyn G Masyasya said.