|PT Jamsostek, the state owned company designated to manage social insurance fund for the private sector, provides health insurance for formal sector workers. Formal sector workers make up about one-third of the workforce, or around 34 million workers in 2010. Jamsostek provides four programs i.e. employment injury insurance, life insurance, old age savings and health insurance.
The first three schemes are mandatory and provided in one package for all private sector enterprises in the formal economy.
- Jamsostek Employment Injury Insurance
Employment injury insurance covers accident at work, occupational disease arising out of employment, and travel accidents that occur while traveling to work following the usual route. This insurance is managed by PT Jamsostek, and is available in 5 different levels of protection. Employees do not contribute to the insurance while employers contribute 0.24 to 1.74 percent of wages, depending on the level of protection.
Despite its mandatory nature, participation in the Jamsostek employment injury insurance, life insurance, old age savings programs is considerably low. In 2010, of around 34 million informal sector workers in Indonesia, only 9,337,423 are active members of these programs.