[Kabar-indonesia] PT Jamsostek's unkept housing promise angers VP

[Joyo at aol.com]

The Jakarta Post 
Friday, September 1, 2006

Unkept housing promise angers VP

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Vice President Jusuf Kalla is scolding a state minister and the president of 
the state-owned insurance company, PT Jamsostek, for breaking promises to 
build low-cost apartments for workers.

Kalla said State Minister for State Enterprises Sugiharto and Jamsostek's 
Iwan P. Pontjowinoto had signed memorandums of understanding (MOUs) last year on 
construction of the affordable apartments in industrial zones, but nothing had 
happened.

Addressing a seminar on Jamsostek's role in improving workers' living 
conditions here Thursday, the Vice President said officials of the state-owned 
company running social security programs for workers should not only be good at 
making promises, but also at making them happen.

"Jamsostek officials have signed MOUs with housing developers and labor 
unions in front of me on developing inexpensive apartments and transportation 
facilities, but none have materialized," he said.

The MOUs were to construct the housing and provide bus fleets in industrial 
zones on Batam Island, Riau Islands and Cikarang and Bandung, both in West Java.

The projects have been delayed partly due to the leadership crisis at 
Jamsostek. Jamsostek Workers Union recently approved a no-confidence motion against 
Iwan for alleged graft and abuse of power, demanding that the government 
replace the company's leadership.

Jamsostek has built four apartments on Batam and two each respectively in 
Cikarang, Bandung and Makassar, South Sulawesi. The housing allows workers to 
live closer to their workplaces and improve their productivity.

"As of next year, the president of Jamsostek and the minister of state-owned 
enterprises should report not only on the company's balance sheet and profits 
but on how many affordable apartments have been built," Kalla said.

Jamsostek "must fulfill its promises to workers," he added.

He asked Sugiharto to evaluate Jamsostek's performance based not only on its 
annual profits but also on the benefits it has given workers through social 
security and other programs, such as housing, education assistance and 
transportation.

Responding to the Vice President's criticism, Sugiharto said: "It serves as a 
good warning that we should not only talk but also implement."

Iwan took Kalla's reprimand as an "expression of his love for Jamsostek" and 
its humanitarian mission. He renewed his pledge that Jamsostek would start 
constructing the housing by the end of the year.

He said Jamsostek was still looking for reliable property developers to carry 
out the projects.

Sugiharto and Iwan declined to comment on the company's leadership crisis. 

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Joyo Indonesia News Service
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