Frittering Away Workers' Savings

Jamsostek's board of directors takes negligible real care in investing insurance money belonging to Indonesian workers. As a result, billions of rupiah have been frittered away.

June 4, 2002

ON November 19 last year, a memo landed on the desk of Achmad Djunaedi, Managing Director of PT Jamsostek, the Indonesian national insurance company. Attached to the memo was a document that had been suppressed by Lukman Nulhakim, Jamsostek's Financial and Information Director. The contents were shocking. An investment of Rp748 billion had been made without any contract being signed. The funds had been placed with state-owned enterprise PT Da

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