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. This commitment is reflected in the National Social Security Law (Law No. 40/2004), the Law on Social Security Providers (Law No 24/2011) but also in the tripartite Indonesian Jobs Pact 2011-2014, which was signed on 13 April 2011. Under the Law on Social Security Providers (BPJS) 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) and BPJS Ketenagakerjaan (Employment- related social security). Alongside, extension is also taking place on the social assistance front, aiming to improve coverage among the poorest and most vulnerable.
As part of its efforts to reach the goal of social protection for all, Indonesia has ratified the ILO’s Social Protection Floors Recommendation (No. 202), defining a set of basic social security guarantees that would enable and empower all members of the Indonesian society to access a minimum of goods and services at all times. Under this framework and in close collaboration with relevant line ministries and 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 single Referral System as a one-stop service for social security and employment services delivery: design study to be launched in early December 2014.
The ILO is currently supporting the development of a Single Referral System (SRS) in Social protection in Indonesia (also known as Single Window Service), as a way to address the issue of coordination of social security services delivery and employment, as recommended by the ABND.
The single referral system is designed to facilitate access to social security and anti-poverty programmes for the poor, informal economy workers, and their families. It is designed to be a one-stop service operated by the sub-national administration and managed with an integrated management information system. The SRS front office is located close to where people live and facilitates dissemination of information on and registration for existing social protection programmes and employment services.
The SRS has six main functions:
- disseminate information on existing programmes;
- develop and maintain an integrated database on beneficiaries and programmes;
- match beneficiaries with programmes and facilitate registration;
- install and operate a call centre;
- facilitate claims and payment of contributions; and
- assist in the complaints and appeals process.
Feasibility studies have been conducted in three provinces (East Java, Maluku, and Nusa Tenggara Timur) and a “Design study of the single referral system for the extension of social protection in Indonesia” has been elaborated by the ILO in collaboration with the Ministry of Manpower. This study will be launched early December 2014.
The National Health Insurance (BPJSI): operational since January 2014 with a positive trend in informal sector workers’ adhesion
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 National Health Insurance (Jaminan Kesehatan Nasional) provided by BPJS Kesehatan and combining contributory and non-contributory schemes is to be a mandatory scheme for all residents and is expected to reach universal coverage by 2019. This universal scheme is officially in operation since the first of January 2014 and as of August 2014 there were approximately 126 million people registered (out of a population of 255 million). 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.
BPJS II, under design and expected for July 2015
A second scheme, BPJS II, covering employment-related social security (including old-age pension, work injury and death of the breadwinner), is currently under design with technical assistance of the ILO and is expected to be operational in July 2015.