Indonesia

Updated by Rachael Chadwick , Resya Kania , Tauvik Muhamad , Sinta Satriana , Sebastiano Snider , Gregoire Yameogo , valérie schmitt on 23.03.2015

 

The Indonesian social protection system combine social insurance programmes with various social assistance schemes. Law No.40/2004 concerning the National Social Security System defines 5 insurance programmes to be developed under the national social security system: Healthcare, Work-injury, Death Benefit, provident fund and pension.

The social Health insurance programme, administered by BPJS Kesehatan, is implemented since January 2014 and designed to be a universal healthcare programme (replacing the existing scattered program targeting specific groups). This scheme which combined a contributory and a non-contributory components covers half of the population (51.8% in October 2014) and is expected to cover at least 95% of the population by 2019 according to the National Medium term plan 2015-2019.

Work injury, Death benefit and provident fund are mandatory for formal sector workers. The upcoming pension plan, expected to be implemented in July 2015, will be applied first to large enterprises while the corresponding schemes for civil servants and military personal will run separately and be merged by 2029. All these schemes are voluntary for informal economy workers resulting in a very low coverage of this category, which represent more than 53% of the workers (BPS, August 2014 data). It is estimated that 29.5 million formal economy workers (out of 53 million) and 1.3 million informal economy workers (out of 61 million) are covered by these insurance programmes, administered by BPJS Ketenagakerjaan.

The social assistance programmes include conditional cash transfer program for very poor households (Family Hope Programme PKH), school aid programmes (providing support to schools and scholarship for students), and subsidised rice for low-income households (Raskin program).

An Assessment Based National Dialogue for Social Protection  has been conducted in 2012 in Indonesia and the common issues identified across these programmes include limitation of coverage, limited access to social services (particularly in eastern parts of Indonesia), limited linkages between social protection programmes and employment services, almost no social security for workers in the informal sector, high social security evasion in the formal sector, data limitation and targeting issues, as well as issues of coordination and overlap among programmes.

In order to address some of these issues, different initiatives among which the single window service approach by the ILO have been developed . In the country’s National Medium-Term Development Plan 2015-2019, the government has committed to develop a more comprehensive and integrated referral system for social protection in Indonesia.