"We realize the private insurance industry sector`s concern about the changes the law will cause but as far as their market is concerned there will still be the middle-and upper-income groups of society that need their services," Agung Laksono said.
Jakarta (ANTARA News) - People`s Welfare Coordinating Minister Agung Laksono said there was no need for the private insurance business community to worry about the implementation of Law Number 24/2011 on the Social Security Agency.

The law was a government initiative to improve the people`s welfare through a health and employment security system, he said here Tuesday.

"We realize the private insurance industry sector`s concern about the changes the law will cause but as far as their market is concerned there will still be the middle-and upper-income groups of society that need their services," Agung said.

He was speaking at a seminar themed "The Law on the Social Security Agency, Implications of the Changes in the National Security System , Between Hope and Reality" in Jakarta on Tuesday.

The minister said the law called for the creation of a Social Security System that would be operated by an agency to be formed by merging two state-owned companies,namely PT Jamsostek which was providing workers social security and PT Askes which was engaged in health insurance.

Under the law, the process to merge the two companies was subject to a deadline that had been set at January 1, 2014.

Meanwhile, Suryo Bambang Sulisto, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said Indonesian entrepreneurs had accepted the law as something positive and Kadin members were ready to apply it in their companies.

"Basically, every entrepreneur wants his or her employees to enjoy welfare because the better their welfare, the better their work performance will be and the more able the company will be able to make profit," he said.

But he also said it was important to ensure that the law was executed properly as the system involved the management of a huge amount of funds.

"We would not want to see this noble law work to the people`s detriment," he said.

Regarding the readiness of the business community to apply Law Number 24/2011, Sulisto said it was an adjustment process that had to be carried out continuously.

He added the Law number 24 was just one side of the hopes of society welfare, the other side and the more important was economic development of Indonesia on the positive path and to generate the funds in order to increase the society and the employment welfare.

Law No 24/ 2011 about the Social Security Agency which was enacted in December last year, had the essential purpose of applying the fifth program of social security based on Law Np 40/2004 on NSSS and change the legal entity of the Social Security Agency from limited liability company to public legal entity that was responsible directly to the President.

Under the law, Indonesia would only have two social security agencies, namely a Health Social Security Agency which is the transformation of PT ASKES (Health Insurance Company) and Employment Social Security Agency, the transformation of PT JAMSOSTEK (Social Security of Employee Company) which will manage employment accident benefit, old age insurance, pension fund, and death insurance.(*)

Editor: Heru Purwanto
Copyright © ANTARA 2012