Sensitization Workshop on Employment Social Security Programme

The 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.

Background

The 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 Indonesia’s policy direction adopting universal coverage for social protection by implementing the universal health coverage, the Government of Indonesia led by the Ministry of Manpower and Transmigration (MoMT) is now 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 a number of its implementing regulations commencing 1st July 2015.

The MoMT has requested that ILO Jakarta technical assistance provide technical review for the formulation of 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 as well as further sensitization on the proposed implementing regulation on Employment Benefit Programme that should address a number of issues and challenges in which, among others, are regarding pension programme: “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). For the Employment Injury scheme, the question ‘Do we need to simplify industrial risk as a basis for formulating contribution rate?’ needs to be shared with relevant ILO’s stakeholders to measure how it fits with generally accepted international standards, including the possibility of “Return to Work” Programme as implemented in other countries.

The technical workshop is taken place in Jakarta on 16-17 June 2014 and has captured number of issues and recommendations. Series sensitization workshop on the issues has been proposed as well by the MOMT.

Under the circumstance, ILO Jakarta in collaboration with UNPAR and AKATIGA supported by DWT and Korean Partnership programme will organize a 2-day sensitization workshop on the BPJS Ketenagakerjaan (Employment Social Security System) in Bandung on 7-8 July 2014.

Objective(s)

The objectives of the workshop are the following:

  1. To share 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 discuss the importance of having a comprehensive protection for workers as well as sustainability of the Employment Insurance scheme design and benefit;
  2. To inform relevant stakeholder on the recommendation development of the implementation of comprehensive and sustainable Employment Working Injury design and benefit introducing “Return to Work” scheme as learned from other countries’ best practices and experiences;
  3. To discuss compatibility of current and future implementation of the policy and programme to fit with ILO’s Standard (Convention 102 on Standard Minimum of Social Security);
  4. To facilitate social dialogue among tripartite ILO’s constituents of government, workers and government organizations on the important concerns related to BPJS-Ketenagakerjaan (particularly on the issue of contributory rate, design and benefit) leading to the agreed consensus among the parties’ concern.