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FGD on BPJS study on adequacy of JHT replacement rate

The project represents the ILO CO-Jakarta in an FGD to discuss findings of a BPJS Employment study on adequacy of JHT replacement rate organized by BPJS Employment. The FGD aimed to gather inputs on findings of the study and policy recommendations with regard to JP and JHT schemes from MOM, TNP2K, WB and the ILO.

The meeting discussed policy options to providing adequate JHT & JP protection while ensuring financing sustainability of the programmes, as the study presented that JHT could not provide such protection. TNP2K suggested to balance contributiry and non-contributory schemes, in particular social assitance programmes. The World Bank focueses on strenghtening DC schemes like JHT until DB schemes are ready for extension to non-wage workers.

The ILO recommends introduction of a DB universal pension scheme that combines contributory and non-conributory financing for wage and non-wage earners, extending JP to small and micro enterprises as mandatory programme, and making JHT as voluntary scheme.