Ridwan Max Sijabat, Jakarta – The House of Representatives has suspended once again the endorsement of the social security providers (BPJS) bill after discord with the government over a proposal to exclude servicemen from the bill's entitlement.
The government's negotiating team could not confirm on Monday whether or not it would exclude police personnel and soldiers from the bill's social security framework, as requested by Defense Minister Djoko Suyanto.
Finance Minister Agus Martowardodjo, who heads the government representatives in the bill's deliberation, insisted that he needed up to 30 days at the most to discuss this matter with the President and the National Police and Indonesian Military (TNI) leadership.
"We need up to 30 days because the President is busy with international and ASEAN commitments over the next few weeks," he said.
Meanwhile, the special committee asked the minister to confirm the participation of police and servicemen in the national social security program within three days so that the bill could be passed into law on Oct. 28.
"The government needs 30 days, while the House is demanding that the issue be settled within three days. The House's leadership and the public will know who is to blame for the delay in the bill's endorsement," said Ferdiansyah, the deputy chairman of the House's special committee for the bill's deliberation.
The 2004 Social Security Law mandates five welfare insurances for all citizens, including police, soldiers and civil servants.
Looking to the law's implementation, the social insurers bill adopts the same framework, which makes the plan to exclude servicemen as contrary to the spirit of the bill.
Moreover, the government and the House have not yet resolved their disagreement over the legal status transformation of two state insurance companies – PT Jamsostek and PT Askes – which would shoulder the social security scheme. The law stipulates that social insurance must be run by non-profit entities.
The special committee want Jamsostek and Askes to be transformed simultaneously in 2014, while the government want the two companies' transformations to take place in 2014 and 2016, respectively.
The government estimated that it would need two years at most to review the 1992 Social Security Programs for Workers Law and the 2003 Labor Law to make them compatible with the 2004 National Social Security System Law. "Besides, the government will need time to prepare for the 2014 general election," said Agus.
Despite failing to finalize the bill, the government and the House have managed to settle one long-disputed issue. During the session on Monday, the two sides agreed to set aside initial capital of Rp 2 trillion each for two non-profit bodies that would oversee the social insurance.
The configuration of the different insurance schemes between the two providers is still unclear, however. The government wants Askes to handle only the healthcare program, leaving the remaining four insurance plans, on occupational accident, death, elderly risk and pensions, to be handled by Jamsostek.
The House, meanwhile, wants Askes to provide healthcare, occupational accident and death benefit schemes, while Jamsostek will be in charge of the elderly and pension benefit programs.
Regarding the state's contribution, Agus cautioned the House toward a prudent approach in managing the social security programs, given the risk of their causing a fiscal burden for the state in times of economic crisis, as many welfare states such as Britain, France, Germany and Japan were now experiencing.
"In an economic crisis, interest rates tend to fall sharply which, in turn, can result in state deficit or bankruptcy if the government has to pay higher interest rates than bank rates to the social security funds," he said.