BackgroundThe commitment to social protection is reflected in the Indonesian constitution (1945) that translated to the National Social Security Law (Law No. 40/ 2004) and the Law on Social Security Providers (Law No.24/ 2011) as well as, recurrent at the Tripartite Indonesian Job Pacts (2011-2014) adopting the recommendation for ratification the ILO Convention 102 on Minimum Standard of Social Security and universal coverage for social security.
In line with the Indonesia’s policy direction adopting universal coverage for social protection by implementing the universal health coverage, the Government of Indonesia lead by the Ministry of Manpower and Transmigration, now is developing Employment Social Security scheme that would revisit the current schemes of Death, Working Injury and Lump-sum old age benefit in which to be extended by pension programme through releasing number of its implementing regulations commencing 1st July 2015.
The MOMT has requested the ILO Jakarta technical assistance to support formulation for the implementing regulations of the employment insurance schemes on design and benefit and its contribution rate, based on proposed actuarial calculations, according to the ILO Standard of the Convention 102 on Minimum Standard for Social Security.
The implementing regulations is expected to address number of issues and challenges in which among others are “how much contribution rate has to be set that would be politically accepted by relevant stakeholders (workers’ and employers’ organization)?” and “what design and benefit needs to be formulated to ensure financial sustainability of the programme according to “defined benefit” pension scheme as ruled by the Law of National Social Security System (SJSN).
The technical request would also cover a knowledge sharing of other countries’ experience on best practice and failure (if any) for lesson to be learnt, (particularly) in the implementation of the working injury scheme, introducing a “Return to Work” Programme and Pension scheme in which the both schemes requires an actuarial calculation. The input would be a reference for the MOMT in completing the new implementing regulations for the BPJS-Ketenagakerjaan that plan to be signed by the Indonesian President in June 2014.
Under the circumstance, ILO Jakarta and DWT ILO Bangkok in collaboration with the MOMT will organize a half-day awareness seminar followed by a 2-day technical workshop on the BPJS Ketenagakerjaan (Employment Social Security System),
The objectives of the workshop are the following:
- To identify concerns and challenges regarding the implementation of law of SJSN (National Social Security System) and BPJS-Ketenagakerjaan (Employment Social Security Programme), particularly on Employment Injury Scheme and Old Age/ Pension Programme and to raise awareness on the importance of having a comprehensive protection for workers as well as sustainability of the Employment Insurance scheme design and benefit;
- To provide a technical recommendations for comprehensive and sustainable Employment Working Injury design and benefit introducing “Return to Work” scheme, based on actuarial calculation, including industrial sector risks and taken in to account other countries best practices and experiences;
- To provide a technical recommendation for comprehensive and sustainable design and benefit for pension programme to fit with ILO’s Standard (Convention 102 on Standard Minimum of Social Security); and
- To facilitate social dialogue among tripartite ILO’s constituents on the important concerns related to BPJS-Ketenagakerjaan, particularly Employment Injury Scheme and Pension (contributory rate, design and benefit) lead to the consensus on agreed recommendation.