Indonesia: Tripartite workshop on the evaluation of the Unemployment Insurance Scheme (JKP), Pension (JP), and Old-age Benefit (JHT) programmes

Christianus H. Panjaitan

The Ministry of Manpower (MOM) of the Republic of Indonesia organized a tripartite workshop on the evaluation of the Unemployment Insurance Scheme (JKP), Pension (JP), and Old-age Benefits (JHT) programmes on 6 - 7 December 2023 in Surabaya, East Java, Indonesia. The workshop objectives are two folds: 1) to identify challenges and gather inputs for refinement of the JKP programme as part of the evaluation of the programme as mandated by Government Regulation No. 37 of 2021 on the implementation of JKP programme, and 2) to gather inputs to develop implementing regulations on JP and JHT reforms as mandated by Law No. 4 of 2023 on Development and Strengthening of the Financial Sector. 

Thirty participants representing the Ministry of Manpower, the Coordinating Ministry of Economic Affairs, the Cabinet Secretary, the National Social Security Council (DJSN), the Manpower Office of East Java Province, trade unions, and academicians attended the meeting. No representative of the employers’ organization appears to participate. Participants of the workshop are divided into two groups based on the two topics mentioned above.

Agenda of the workshop was changed due to changes in the arrival time of resource persons. Mr. Oce Madril of University of Gadjah Mada (UGM) started the first day by presenting an overview of the current social protection system in Indonesia, followed by workers perspective on challenges of the existing social protection system by Mr. Djoko Heriyono of National Labor Union (SPN). The workshop was then officially opened by Ms. Retno Pratiwi, Director of Worker’s Social Protection of the Ministry of Manpower.

The ILO presented ILO recommendations for improvement of the JKP programmes based on studies conducted, following a presentation on JKP evaluation by Mr. Indra Budi Sumantoro of DJSN. Mr. Ahmad Ansyori, an expert on social protection, closed the session with a presentation on JKP evaluation and proposed recommendations for improvement from the expert’s perspective. The participants discussed challenges in the implementation of JKP and agreed on a set of recommendations for improvement.

The group discussion on JKP identified eleven challenges in the implementation of JKP programme, which make it difficult for workers in participating in the programme and claiming the benefits, some of which include: 1) requirement of membership in other employment social protection programme, especially the National Health programme (JKN); 2) statement of dismissal to be used as reference for processing the claim, as referred to in Article 20 (3) of the Government Regulation No. 37/2021; 3) claim expiration period of 3 months after the date of dismissal as referred to in Article 40 of the above mentioned regulation; 4) limited provision of vacancy information and training; 5) non-compliance of the employers in registering the workers in mandated social protection programmes; and 6) data and information management system integration between MOM and BPJS Employment.

Recommendations proposed by the participants include: 1) eliminate requirement of membership in other social protection programme, except in the Employment Injury Insurance (JKK) and Death Benefits (JKm) programmes; 2) eliminate requirement to have court decision as official statement of dismissal for disputed dismissal case, and use acceptance of the dismissal by workers as reference to process the claim, even though a case on other aspects of the dismissal, such as severance payments, is ongoing; 3) eliminate the provision on claim expiration period of 3 months; 4) provide access to vacancy information in job portals other than KarirHub, which is provided by MOM; 5) increase unit budget of the training to match that of Pre-Employment Card programme, and evaluate the quality of vocational training programme of private institutions; 6) improve integration and operation of the information management system; and 7) revise operational regulations so as they do not create unnecessary challenges for workers to access JKP benefits.

Events 06.12.2023 - 07.12.2023 Indonesia social protection policy , old-age , unemployment