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Fri, May 25, 2012
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Constitutional Court Nixes Attempt to Review Jamsostek Law
Agus Triyono | December 25, 2011

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The Constitutional Court rejected on Friday a demand for a judicial review of a 1992 Law on the state Workers’ Social Security Insurance Scheme filed by the All-Indonesia Workers Union.

The union (SPSI) said Article 1 of Chapter 6 of the law ran against the 1945 Constitution.

The article in question states that the Workers’ Social Security Insurance Scheme (Jamsostek) should be managed by a state-owned company as a profit-making enterprise.

The SPSI said the Constitution provides that such a scheme should be run instead as a nonprofit organization and should put the people’s welfare first.

However, the court said in its ruling that the Constitution did not specifically touch on the Jamsostek scheme.

“According to the court, the management schemes in the law on social security insurance are not in a position that runs contrary but only have a difference in spirit only,” Judge Akil Mochtar, one of the Constitutional Court justices, read from the verdict.

In the ruling, the court also said that the plaintiffs might be jeopardizing the interest of workers themselves by filing the judicial review.

“If the logic of the plaintiffs is used, which holds that Chapter 6 of the Jamsostek Law runs against the 1945 Constitution, quod non, then the implementation of the four social security insurance programs stated in Chapter 6 of the law and also in Chapter 18 of the law on national social security insurance would have no legal foundation and therefore could not be implemented,” Akil said.

He was referring to the work accident insurance, death insurance, retirement insurance and health insurance contained in the Law on Jamsostek, as it is commonly known.

A verdict set out by the Constitutional Court is final and binding in nature and thus cannot be appealed.