Ridwan Max Sijabat, Jakarta – Employers and workers joined forces on Thursday to oppose the bill on national social security (SJSN) which they said would cause legal uncertainty and confusion among the public.
The opposition was expressed in a bipartite meeting between the Indonesian Employers Association (Apindo) and major labor unions, including the All-Indonesian Workers Union Federation (FSPSI), the Indonesian Prosperity Trade Union Federation (FSBSI) and the New Indonesian Labor Union Federation (Gaspermindo Baru).
Apindo deputy chairman Hasanuddin said the government and the House of Representatives should drop the bill because it had created confusion among employers and workers and overlapped with existing laws on social security programs for workers, civil servants and servicemen.
"We oppose the bill because the stake-holders, in particular Apindo and labor unions, were not involved in preparing it and that is why its submission by the government to the House has created confusion among us," he said, adding that the government should not make any legislation unilaterally without consultation with the relevant stakeholders.
Hasanuddin insisted that with the bill, the government's concept of social security programs as stipulated in the amended 1945 Constitution was flawed.
"The government should run a separate basic social security program for the unemployed and the poor and should include them in the existing social security programs because according to the Constitution, orphans and the unemployed are the responsibility of the state," he said, adding that workers and the unemployed held a different social status.
He appreciated the government's commitment to developing a welfare state with the social security system but warned that many welfare states such as France and Canada have been facing financial difficulties in covering the programs due to the ailing global economy.
"The government must be prepared to outlay a huge amount of money if it goes ahead with the mandatory social security system," he said.
The government proposed the mandatory social security system to provide social security protection for all 230 million people since existing insurance schemes only cover 20 percent of the population.
Relevant government officials have insisted that the despite the bill, the existing state-owned companies – PT Jamsostek, PT Askes, PT Taspen and PT Asabri – would continue with the current social security schemes but they were required to make adjustments in terms of insurance schemes, premiums and claims.
Apindo secretary-general Djimanto explained that after conducting a joint in-depth study, employers and workers found the bill confusing, since the bill on one side could be treated as an umbrella for other laws on social security programs, but it also went into detailed social security programs for the entire workforce, including the unemployed and the poor. "We would consider accepting the bill if it regulated general principles of the social security system with the exception of the proposed detailed programs to avoid an overlapping with existing social security laws," he said.
If the government enforces two legislations for two similar obligatory programs, the result would be legal uncertainty, he said.
Idin Rosidin, secretary-general of the FSBSI, said labor unions could not accept the bill that divided the cost of the health insurance scheme, with both workers and employers contributing 50 percent of the premium. Under the current health-care program provided by state insurance company PT Jamsostek, the participants' premiums are covered by employers. Jamsostek covers social security schemes for 23 million workers nationwide.
FSPSI deputy chairman A. Sidabutar concurred, saying it would be better for the government to give more attention to the ongoing review of Law No. 3/1992 on social security programs for workers to prevent any more leakages in Jamsostek's Rp 33 trillion assets and to invest them carefully to improve workers' welfare.