Resource
Indonesia: Implementation of the national social security law
Summary (English)
In 2004, the Indonesian Parliament approved a major legislative achievement providing a basic framework for the development of a national social security and social assistance system. The law stipulates the principles and goals of the National Social Security System supervised by a Council and concerning programmes to cover five major policy areas: health insurance, employment injury, old-age, pensions and death benefits. Employers have the obligation to enrol their employees in the social security schemes and to jointly pay the contributions. Moreover it is stipulated that the Government will provide social assistance to the poor. Consequently this law is supposed to be a major step forward in the development of a comprehensive national social security system in Indonesia. However, so far it has failed to give meaningful impact except for covering the poor. Moreover, the law does not mention the transition measures from the existing segmented schemes to the ultimate system, nor does it mention other points concerning provisions, administration, and coordination. These issues need to be addressed if the system is to be implemented efficiently.
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Note
Technical Paper published at the ILO Asia-Pacific Regional High-Level Meeting on Socially-Inclusive Strategies to Extend Social Security Coverage, held in New Delhi, India, 19-20 May 2008.