Where do Jamsostek Funds Go?

APPROXIMATELY 23 million workers from all over Indonesia pool their ‘savings’ in a gigantic piggy bank called the Employees’ Social Security Fund—or Jamsostek. Today the company is worth Rp30 trillion, and the State sets aside some of its profits in the Members Welfare Improvement Fund (DPKP). By June this year, these funds reached Rp500 billion and are intended to “improve the quality and welfare of workers.” However, Tempo’s Investigation Team discovered that a substantial amount of this money is misappropriated, violating Jamsostek’s own boundaries.

November 2, 2004

THE President Director of PT Jamsostek, Achmed Djunadi, touched the most fundamental philosophy of the state-owned limited company when he made the following promise: to provide welfare, improve the quality of life of every Jamsostek participant, and to improve and maintain transparency within the company. “The funds being managed today reach around Rp30 trillion,” he told Tempo last week.

To Jamsostek, whose funds come from the ‘

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