The withdrawal of retirement funds is the workers` rights, but the company will have difficulties providing social security cash if they withdraw it simultaneously.
Jakarta (ANTARA News) - The threat by some workers to withdraw a massive amount of retirement funds in mid-January may not be fulfilled at the same time by state-owned insurance company PT Jamsostek, an economist said.

"I don`t think that the company would make it complicated, but the demand cannot be fulfilled simultaneously," said EC-Think Indonesia economist Telisa Aulia Falianty here Tuesday.

Telisa said the withdrawal of retirement funds is the workers` rights, but the company will have difficulties providing social security cash if they withdraw it simultaneously.

"Jamsostek`s cash flow and liquidity may not be ready for it," he said.

Besides a massive withdrawal of retirement funds may also adversely affect the financial sector because Jamsostek has invested the retirement funds in various financial assets, he said.

"It could have a negative impact on the financial sector," he said.

Meanwhile, the President of Confederation of Indonesian Workers Union (KSPI) Said Iqbal said Jamsostek will not easily approve the workers` demand for a massive withdrawal of retirement funds should they realize the threat.

"Jamsostek would not approve the demand because it does not want to take the risk of being criminalized," said Said.

Said added Jamsostek contribution funds are state assets which if the withdrawal violates the law the company can be sued.

"I think Jamsostek will not take that risk," he said.

He said workers must meet a number of requirements to withdraw their retirement funds, including letter of layoff, minimum work period of five years and approval from their employers as job provider.

The workers still refuse provisions on the national Social Security Providers System (BPJS) in which 3 percent of workers` old age contributions must be paid by their employers and 2.7 percent by the workers per month. (*)

Editor: Heru Purwanto
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