Ridwan Max Sijabat, Jakarta – The government has issued a new regulation increasing compensation for death and occupational accident claims, for eligible workers (or their families) participating in its social security program, Jamsostek.

Government regulation no. 76/2007 signed by the President on Dec. 10, 2007, replacing regulation no. 14/1993, stipulates increases of up to 300 percent to transportation, medical treatment and rehabilitation costs, and death and funeral benefits under its death and occupational accident scheme.

State-owned workers' insurance firm PT Jamsostek operations and services director Achmad Anshori said the company proposed the increase because the benefits were out of date, set in 1993. "Jamsostek is also financially healthier despite no hikes to its premium," he told The Jakarta Post on Tuesday.

"Jamsostek allocated a total of Rp 3.7 trillion (US$393 million) to cover the new benefits, to show the public that Jamsostek's new management has a strong commitment to improving social welfare for workers."

He said under the new regulation workers involved in occupational accidents were eligible to claim for medical treatments and rehabilitation costs.

"Jamsostek will also pay compensation to workers (or families of workers) who are handicapped or killed in occupational accidents," Achmad said. "Workers receive death benefits, funeral fees and periodical benefits over 24 months."

Compensation paid to workers who are handicapped on the job has increased to 70 percent of their monthly salary over 80 months (previously 70 percent over 70 months). Entitlements for families of workers who are killed on the job have increased to 60 percent of the deceased's gross monthly wage, over 80 months (previously 60 percent over 70 months).

The death payout to families has been increased to Rp 10 million (from Rp 6 million), funeral payouts increased to Rp 2 million (from Rp 1,5 million) while the periodical compensation (paid in 24 monthly installments of Rp 200,000 each) would remain the same.

Compensation payouts for land transport costs (for workers killed away from home) has been increased to Rp 400,000 (from Rp 150,000), sea transport to Rp 750,000 (from Rp 300,000) and air transport to Rp 1.5 million (from Rp 400,000).

Jamsostek's maximum liability for workers medical costs has been increased to Rp 12 million (from Rp 8 million) and rehabilitation costs remain the same (at Rp 2 million).

Achmad said occupational accidents were common despite the annual "zero accidents" campaign. "A low awareness of occupational safety among workers and employers has contributed to the high number of accidents. There were some 5,400 reported cases of occupational accidents from January to August," he said.

"More than 4,300 workers were handicapped and 1,150 killed, costing Jamsostek some Rp 142.1 billion in benefits. "This means on average 22 workers were handicapped and six killed in occupational accidents every day."

Anshori said despite its low premium, Jamsostek was determined to invest its assets (totaling Rp 56 trillion) into the stock market and bank bonds, to generate enough profits to provide for mortgages, and the construction of cheap apartments for workers in industrial zones.

"Jamsostek aims to build 100 low-cost flats in Batam, Medan, Palembang, Greater Jakarta, Bandung, Semarang, Surabaya and Makassar over the next five years," he said.