Social Protection Floor Assessment in Indonesia
The social protection floor (SPF) is a basic set of social security guarantees that should be guaranteed to all the population. In line with the Social Protection Floors Recommendation, 2012 (No. 202), which was adopted by the International Labour Conference (ILC) at its 101st session in June 2012, Indonesia strives towards the extension of social security coverage and the establishment of at least a social protection floor for all. The right to social security for all is reflected in the Indonesian Constitution, in the National Social Security Law (Law No. 40/2004) and the recent Law on Social Security Providers (Law No. 24/2011). Indonesia's commitment to social protection is also reflected in the tripartite Indonesian Jobs Pact 2011-2014, which was signed on 13 April 2011.
From April 2011 to November 2012, the ILO, in close collaboration with Bappenas (Ministry of National Development Planning) conducted an assessment of the social protection situation in Indonesia with an aim to know whether the social protection floor is a reality for the whole population. The assessment exercise was based on a number of consultations with all relevant ministries, institutions, workers' and employers' representatives at both the provincial and national levels, and United Nations agencies participating in Indonesia's UN sub-working group on the SPF. Despite the already advanced development of social protection in Indonesia, which includes both contributory and non-contributory schemes for workers and their families in the formal and informal sectors, a number of policy gaps and implementation issues were identified and some specific policy recommendations were formulated for the achievement of a comprehensive social protection floor in Indonesia.
This policy dialogue – called the assessment based national dialogue (ABND) exercise – consisted of the following steps:
STEP 1 – Development of the assessment matrix: the assessment matrix describes existing social security schemes that provide access to health care and guarantee income security for children, the working age, the elderly and people with disabilities. The inventory identifies policy gaps, implementation issues and potential policy recommendations for social protection provisions with a goal of closing gaps in the social protection floor.
STEP 2 – Costing using ILO Rapid Assessment Protocol (RAP): specific social protection provisions that need to be introduced or further expanded identified during the assessment process are then translated into "costable" scenarios. The costs of these provisions are calculated and projected over the 2012-2020 period. This cost is expressed as a percentage of Gross Domestic Product (GDP) and government expenditures in order to provide preliminary indications of the affordability of the proposed social protection provisions.
STEP 3 – Finalization and endorsement: the results of the costing exercise and the next steps, including the identification of possible measures to increase the fiscal space for social protection, are discussed with all stakeholders in the framework of workshops. A report detailing the costing results and policy recommendations is produced and shared with the Government of Indonesia.
The workspace is structured in the following sub-sections: