BackgroundIndonesia’s social protection system is still evolving. Since its amendment in 2002, the Indonesian Constitution recognizes the right of all people to social security, and the responsibility of the State in the development of social security. The National Social Security Law follows a staircase approach with non-contributory schemes for the poorest people, contributory schemes (with nominal and subsidized contributions) for the self-employed and informal economy workers, and statutory social security schemes (with contributions set at a percentage of wages) for formal sector workers and their dependents.
In 2014, social security schemes managed by four State-owned companies were consolidated to two public social security administering bodies: BPJS Kesehatan (Health) and BPJS Ketenagakerjaan (Employment). The new BPJS Ketenagakerjaan (Employment) was launched in 2015. In 2020, following further social security reform, a new Employment Insurance scheme was adopted and it is currently in the process of being rolled out by the national social security institution. In light of this new development, the time is right for consolidating the government of Indonesia’s efforts towards building a more comprehensive national social protection system.
However, in the current mechanisms, unemployed workers are not effectively protected in case of job loss. Without an employment insurance provision, statutory severance pay and lump-sum withdrawal of old-age saving are their main source of income replacement against unemployment. However, these schemes are not designed to guarantee an adequate level of benefit; and in particular case of insolvencies, the employers’ liability scheme often becomes less reliable to protect unemployed workers. Public employment services and re-training programmes are also expected to play an important role to protect unemployed workers by promoting reemployment and shifting workers from a declining sector to emerging one.
ILO in collaboration with the Alliance of Independent Journalists (AJI) Jakarta will organize an interactive discussion to strengthen understanding and awareness of journalists and media organizations about social insurance, particularly the unemployment insurance. The unemployment insurance has become more relevant during the COVID-19 pandemic. Good social insurance programme, including the unemployment insurance, will both benefit workers and employers and, in turn, will contribute to the better economy of the country.
- Encourage media coverage and reportage regarding the implementation of the social insurance, particularly the plan of the government for the application of the unemployment insurance as means to protect both workers and employers, particularly during the new normal era.
- Share information with and raise journalists and media organizations awareness regarding the ILO’s standards and international experiences about benefits of the social insurance, particularly the unemployment insurance, for both workers and employers.
- Further discuss actions that should be taken by relevant stakeholders, including government, private sector and workers in ensuring the effective implementation of social insurance, particularly the unemployment insurance, to provide better protection for both workers and employers.
- Share good practices from various ILO’s member States employers, regarding social insurance in general and the unemployment insurance in particular as references for relevant stakeholders.