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Non-profit institution manages BPJS

JAKARTA: Government declared that the administrator Social Security Organizing Body (BPJS) administrator will be in form of non-profit public company and divert several program that have been applied earlier.The new institution establishment will be

JAKARTA: Government declared that the administrator Social Security Organizing Body (BPJS) administrator will be in form of non-profit public company and divert several program that have been applied earlier.The new institution establishment will be conducted gradually and according to the readiness of each program that will be combined.BJPS implemented gradually to anticipate unpreparedness of each program if its implemented simultaneously, Finance Minister Agus Martowardojo said.The point is that BPJS implementation is merely a displacement of program and later it will use public company concept. We are agreed for such concept, he said, yesterday.For instance, social security is the most ready program and it will be implemented prior to other as well as work accident insurance if possible.Government said each state-controlled insurance company that will be unified has voluntarily accepted such plan.Clearly, BJPS is mandatory and universal. We dont want any other additions, Agus added.Earlier, government and House Commission IX agreed to unify four state-controlled insurance companies into two BPJS. The two programs are BPJS health, work accident and death insurance program, and BPJS old-age pension insurance program.Such decision has been made in BPJS working committee meeting held on June 10-11, 2011. It also agreed to list all principles listed in the National Social Security System (SJSN) Law in preamble to reviesw BPJS Law Draft.Meanwhile, BPJS units will comprise supervision unit and implementation unit and government is requested to prepare the details about those units to be discussed in the next working committee meeting.Government and House of Representatives agreed to list regulation regarding 4 SOEs transformation into BPJS and its implication.The regulation that implicated on the transformation of PT Taspen, PT Asabri, PT Askes, and PT Jamsostek must be carefully formulated and accommodates measurable phases by calculating the implication against the aspect of employment, legality and economy including fiscal.The programs will be diverted to BPJS health, work accident and death insurance program, and BPJS old-age pension insurance program.Prior to this, Taspen and Asabri were unwilling to join BPJS since they considered themselves as pension fund management institutions, Jamsostek and Askes also unwilling to join.However, Asabri as SOE that controls social insurance program for TNI soldiers / members of the national police and civil servant of defense ministry is ready to follow and implement government decree, Corporate Secretary Asabri said.PT Taspen Secretary Faisal Rachman said the four SOEs transformation is still a rumor. Government asserted the transformation will be conducted for basic guarantee function according to SJSN Law, which declared The State is obligate to provide basic guarantee for all Indonesian people. (t06/msw)

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