Indonesia

and
Its Social Security System
A Brief Introduction
Social Security Reform
in Indonesia
Social Security System before 2014

3
 Common Problems in Social Security

Life expectancy M / F : 69,67 / 73,88 (2015)  72,26 / 76,69 (2020)

Fertility (TFR) : 2,22 (2015)  1,98 (2030)
INDONESIA: Old-age dependancy ratio : 8,16% (2015)  13,38% (2030)
1. Low Coverage Source: UN – World Population Prospects
2. Benefit Inadequacy
Ageing
Population Economic
Crisis

Benefit PROBLEMS
Degradation

Low
Coverage

Benefit
Inadequacy 12,35 million members
out of 45,60 formal
workers (27,08%)

4
 Social Security Reform

Social security reform to ensure the protection to all people of Indonesia

through the enactment of Law 40/2004 and Law 24/2011

5
 Timeframe

2004:
2004 The enactment of Law 40/2004
The National Social Security System
2015

2011
01.Juli.2015:
BPJS Employment
Fully operated
25.Nov. 2011: 2014
The enactment of Law 24/2011

01.Jan.2014:
2012 BPJS Health established and officially operated
2013 BPJS Employment established

Transition Period:
 Designing the Government Regulation/Presidential Decree and related Law/regulation
harmonization
 Askes  BPJS Health
Transfer asset, data, members, system and network from Jamsostek/Jamkesmas/Jamkesda to BPJS Health
 Jamsostek  BPJS Employment
6
 Institutional Arrangements

SS Organization Coverage under the New Scheme

New SS Organization
before 2014

Formal and Informal Workers:

BPJS of Employment
121,2 M workers

BPJS of Health Universal Coverage: 241 M

Civil Servants:
4,5 M workers

Army and Police: 835 thousands

7
 Program and Benefit

BPJS Health BPJS Employment

Provident
Fund
Employment Pension
Health Benefit Insurance Benefit
Benefit
Death
Benefit

Contribution Assistance
Civil Servant, Employer and Worker (self
Receiver
The Poor Army and Police Employee employed)
Will be transferred to
BPJS Employment no later
than 2029

8
 Current Program and Benefit

Pension
Employment Death Old Age
Benefit
Injury Benefit Benefit Benefit
Employer

0.24% - In the
0.3% 3.7% development
1.74% process
Employee

Implemented
Free Free 2% by
July 2015

 New Programs under BPJS Employment are still being discussed with the Government
 Fully operated by July 2015

9
 The Indonesian House of Welfare

SOCIAL SECURITY SCHEME

Permanent Total Disability

Employee Compensation
Disability Allowance
Old Age Lump Sum

Cash/Allowance
Ola Age Pension

Survivor Pension

Parent Pension

for Death
IN CASH

Funeral
Pension BENEFIT

OCCUPATIONAL TREATMENT AND

RETURN TO WORK
SAFETY & HEALTH REHABILITASI IN KIND
HEALTHCARE BENEFIT BENEFIT

BPJS Employment BPJS Health

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Social Security Pension Plan
(in development by Government)
 Principles of Social Security Pension Plan
Law No. 40/2004 Article 39 - 42

1. Objective of SS Pension Plan: to maintain a degree of decent life

(able to meet the basic needs of participants and / or their families)
when participant's income is lost or reduced due to retirement or
permanent total disability
2. Defined benefit pension plan  old age, disability, survivor
(widow/er, orphan, and parent)
3. Benefit payment  monthly payments (if eligible) or lumpsum
4. The minimum number of contribution years required to be eligible
for a monthly pension benefit is 15, unless stipulated otherwise by
regulation
5. Members who are not eligible for a monthly pension benefit will
receive pension benefits in the form of lump-sum payment of
accumulated contributions plus investment
6. The contributions are shared between employers and employees

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Old-age / Retirement Pension

13
Disability Pension

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Survivor (widow/er, orphan, parent) Pension

15
Towards New Era of Social Security
in Indonesia
 Transformation
After Law SJSN & Law BPJS

PROGRAM MEMBERSHIP & FUND

 Development of Pension Program
 Regulation harmonization
SERVICES MANAGEMENT
 Coverage expansion to Formal - and • Non Profit
Informal Workers • Fund Management per Program
 Access expansion to all workers • Investment Fund
 Easiness in administration system • Total Benefit
 Service delivery improvement

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BPJS KETENAGAKERJAAN
VISION

18
 Active Protection
in the Era of BPJS Ketenagakerjaan

It’s not workers who seek BPJS

Ketenagakerjaan to have
Protection
but
BPJS Ketenagakerjaan expands its
access to provide protection for to
all workers

19
Operational Approaches

20
 Access to Workers

OPERATIONAL NETWORK SMART CARD

Google Store
11 Regional Offices
121 Branch Offices
53 Supporting Branch Offices

512 OUTLET

Multi Purpose Card

SMS, WEBSITE & CALL CENTER SMART KIOSK SOCIAL MEDIA

2757

www.bpjsketenagakerjaan.go.id STRATEGIC ALLIANCES

500910 FB: BPJSTKinfo

Twitter: @bpjstkinfo
Easiness feature will be continuously developed during the year of 2014

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Towards New Era of Social Security
In Indonesia

World Class
Social Security Organization

22
“Our citizens are much more important than customers.. We have
to treat them even better than we would to customers”
Mats Sjostrand, Director General – Swedish National Tax Agency

23
Terima Kasih

Gedung BPJS Ketenagakerjaan

Jl. Jend. Gatot Subroto No. 79
Jakarta Selatan – 12930
T (021) 520 7797
F (021) 520 2310
www.bpjsketenagakerjaan.go.id