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Indonesia

Updated by Rachael Chadwick , Resya Kania , Tauvik Muhamad , Sinta Satriana , Sebastiano Snider , Gregoire Yameogo , valérie schmitt on 05.02.2015

 

Since its amendment in 2002, the Indonesian Constitution recognizes the right to social security for all and the responsibility of the state in the development of the social security policy. This commitment is reflected in the National Social Security Law (Law No. 40/2004),and in the tripartite Indonesian Jobs Pact 2011-2014, which was signed on 13 April 2011. Following the Law on Social Security Providers (Law No 24/2011), the four state-owned insurance companies (PT Askes, PT Jamsostek, PT Taspen and PT Asabri) are transformed into two non-profit public entities—BPJS Kesehatan (Health care) and BPJS Ketenagakerjaan (income security).  Alongside, extension is also taking place on the social assistance front, aiming to improve coverage among the poorest and most vulnerable.

Under the framework of the ILO's Social Protection Floors Recommendation (No. 202), in close collaboration with relevant line ministries, the UN sub-working group on the social protection floor in Indonesia and other relevant stakeholders, the ILO conducted an Assessment Based National Dialogue (ABND) in 2012.

A Social Health Insurance (BPJSI): operational since January 2014 with a positive trend in informal sector workers’ adhesion

BPJS Kesehatan, the administrative body of the National Health system implemented a social Health Insurance in January 2014. This scheme combines contributory and non-contributory components and should be mandatory for all residents and expected to reach universal coverage by 2019. As of 30 January 2015, there were approximately 136 million people registered (out of an  estimated population of 255 millons ). 86.4 million people were transferred directly from the former subsidy scheme for health insurance (JAMKESMAS).

Identified as a specific group with very a very low coverage under previous social security schemes, informal sector workers are adhering to the new health system: By March 2014 over one million informal economy workers had registered. However, there are over 63 million people working in the informal economy in Indonesia, which means that sustained efforts are needed to close the gap.

A new pension scheme, under design and expected for July 2015

A new public pension scheme is under design and is expected to be implemented by BPJS Ketenagakerjaan (the administrative body in charge of "income security" including old-age pension, work-related accident benefit and death benefit) in July 2015.