Indonesia strives for the extension of social protection coverage to the entire population. Since its amendment in 2002, the Indonesian Constitution recognizes the right to social security for all and the responsibility of the government in the development of social security policy. Though existing social protection schemes tend to be fragmented and scattered, progress towards a more comprehensive provision of social protection coverage is taking place.
An important milestone is the progressive implementation of the National Social Security Law (Law No. 40/2004 regarding the National Social Security System). The law mandates the extension of social security coverage to the whole population in the categories of health, work injury, old age, and death of the breadwinner. The Law applies non-contributory schemes for the poor, contributory schemes for the self-employed and statutory social security schemes for formal sector workers. The Law on Health Social Security Providers (No. 24/2011), elaborating the implementation of the National Social Security System, stipulates the universal health insurance to commence in 2014, while work injury, old age, and death are anticipated to start in 2015. The Social Health Insurance Provider (BPJS Kesehatan) is officially in operation since the first of January 2014. BPJS Kesehatan is tasked with providing health insurance to the whole population, through contributory and non-contributory schemes, and is expected to gradually extend coverage and reach universal coverage by 2019. The Workers’ Social Security Provider (BPJS Ketenagakerjaan) is preparing to launch in 2015.
Until the National Social Security System is fully operational, the social protection system principally comprises statutory social security schemes for formal workers and a tax-financed social assistance system (public welfare) as part of a broader set of antipoverty programmes and government subsidies. Alongside the development of the National Social Security System, extension is also taking place on the social assistance front, aiming to improve coverage among the poorest and most vulnerable.
Various national and local-level social protection programmes for different target groups exist in the country. These programmes, however, tend to be fragmented under different ministries and at different government levels where improved coordination is called for.