Costing

Using the ILO costing tool called the Rapid Assessment Protocol (RAP), the costs of the social protection provisions are estimated and projected over the 2011-2020 period. This costing exercise came up with an estimation that guaranteeing the SPF to the whole population of Indonesia would cost between 0.74% and 2.45% of GDP by 2020.

RAP Model Structure

For each of the SPF guarantees, policy recommendations were translated into specific social protection policy options called "scenarios":

Health - Closing the SPF gap for health care is estimated to cost between 0.17% of GDP (“low” scenario) and 0.98% of GDP (“high” scenario) by 2020. Both low and high scenarios for health correspond with health care packages currently being developed within the implementation framework of the BPJS Kesehatan (BPJS I).

- The “low scenario” includes the extension of a third-class moderate level health insurance benefit package for the poor, near poor, and vulnerable (bottom 40th percentile by income), Human Immunodeficiency Virus (HIV) testing for the most-at-risk populations, regular check-ups for all people living with HIV (PLWHIV), antiretroviral (ARV) treatment for those who are eligible, and the introduction of a universal package to reduce mother to child transmission (MTCT) for HIV and Syphilis.
- The “high scenario” includes the extension of a first class-high level health insurance benefit package to the entire informal economy population, the inclusion of HIV testing for the general sexually active population (age 15-49), regular check-ups for all PLWHIV, ARV treatment for those who are eligible, and the introduction of a universal package to reduce mother to child transmission (MTCT) for HIV and Syphilis.

Income security for children - Closing the SPF gap for children is estimated to cost between 0.03% of GDP (“low” scenario) and 0.18% of GDP (“high” scenario) by 2020.

- The "low scenario" includes the expansion of the current Program Keluarga Harapan (PKH) programme to cover all poor households.
- The "high scenario" includes a universal child allowance for all children. The proposed allowance is similar to the current PKH benefit for primary school students.

Income security for the working age population – Closing the SPF gap for working age population through the establishment of a public works programme linked with vocational training is estimated to cost around 0.47% of GDP by 2020.

- More detailed feasibility studies of unemployment insurance schemes and of a Single Window Service need to be conducted. In addition, a roadmap for the implementation of BPJS Ketenagakerjaan (BPJS II) needs to be developed with all actors involved.

Income security for the elderly and people with severe disabilities – Closing the SPF gap for the elderly and people with severe disabilities is estimated to cost between 0.08% of GDP ("low" scenario) and 0.82% of GDP ("high" scenario) by 2020.

- The "low scenario" includes the extension of the existing non-contributory pension scheme for all persons with severe disabilities and all vulnerable elderly.
- The "high scenario" includes the extension of the existing non-contributory pension scheme for all persons with severe disabilities and the establishment of a universal pension for old age covering people 55 years of age (the legal retirement age in the formal sector) and older.

- Validation workshop of the Social Protection Assessment Based National Dialogue in Jakarta (4 August 2011)

- Training Course on "Social Protection: Costing Exercise and Advocacy" - Jakarta, 20-22 November 2012