Examining two-year implementation of social security for workers in the digitalization era

Social security system for workers has been implemented for two years in Indonesia. This system covers four schemes managed by the Employment-related Social Security Provider (BPJS Ketenagakerjaan) since 1 July 2015: the Work Accident Benefit, Death Benefit, Old-Age Saving Benefit and Pension.

Press release | Jakarta, Indonesia | 06 September 2017
JAKARTA (Joint Press Release) – Social security system for workers has been implemented for two years in Indonesia. This system covers four schemes managed by the Employment-related Social Security Provider (BPJS Ketenagakerjaan) since 1 July 2015: the Work Accident Benefit, Death Benefit, Old-Age Saving Benefit and Pension.

During its two-year implementation, BPJS Ketenagakerjaan have reached more than 23.46 million Indonesian workers. However, some challenges still need to be faced by BPJS Ketenagakerjaan, such as numerous informal workers have not yet been reached and the ongoing discussion on how to improve the scheme, including the high number of reserves and low claims for work accident benefit.

To provide concrete inputs to the Government of Indonesia who is now in process of examining the implementation of employment social security, the International Labour Organization (ILO) in collaboration with the Directorate of Social Security, Ministry of Manpower of Indonesia, is conducting a discussion forum titled “Examining Two-Year Implementation of Social Security in the Digitalization Era” on Thursday, 7 September, at Hotel Crowne Plaza, Jakarta, from 09.00-13.00 WIB.

The government is committed to accelerate the society-based economic development through new enterprises that are in turn able to move the economy and create jobs based on the transformation of employment social security that includes harmonization of regulation, synchronized programmes, extension of membership coverage, strengthening institutions and organizations, transparent asset management and investment as well as integration of business process and IT system."

Wahyu Widodo, Director of Social Security for Workers, Directorate General for Industrial Relations and Social Security, Ministry of Manpower
Wahyu Widodo, Director of Social Security for Workers, Directorate General for Industrial Relations and Social Security, Ministry of Manpower, explains that in this digitalization era, the Government of Indonesia has attempted to provide social protection and welfare for its people through National Social Security System (SJSN) which aims to minimize the social risks and cover greater membership as well as provide greater benefits to the society. It is hoped that this system is able to fulfil decent living basic needs in the times of income loss, injury, job termination, elderly and pension.

“The government is committed to accelerate the society-based economic development through new enterprises that are in turn able to move the economy and create jobs based on the transformation of employment social security that includes harmonization of regulation, synchronized programmes, extension of membership coverage, strengthening institutions and organizations, transparent asset management and investment as well as integration of business process and IT system,” said Wahyu, who will officially open the Forum.

To continue improving the development and implementation of social security in Indonesia, we need to ensure sustainable social dialogues among relevant partners in order to improve Indonesian workers’ productivities and competitiveness. The ILO, therefore, is committed to support efforts taken by Indonesia to develop and implement employment social security."

Michiko Miyamoto, Country Director of the ILO in Indonesia
Based on labour force data per February 2017, Indonesia has a great potential with more than 130 million labour force. However, based on BPJS Ketenagakerjaan data per Juli 2017, only around 23 million are covered by BPJS Ketenagakerjaan. For workers in the informal economy only 807,825 people are covered from a total of 72 thousand people.
Therefore, Wahyu emphasized the need for optimizing the membership coverage. “This could be done through various ways such as strengthening the capacity of organizations and public-private partnership,” he added.

“To continue improving the development and implementation of social security in Indonesia, we need to ensure sustainable social dialogues among relevant partners in order to improve Indonesian workers’ productivities and competitiveness. The ILO, therefore, is committed to support efforts taken by Indonesia to develop and implement employment social security,” said Michiko Miyamoto, Country Director of the ILO in Indonesia.

The Forum is aimed at gaining inputs and feedback regarding the implementation of employment related social security from the perspectives of government, workers and employers. The Forum is also aimed to share knowledge and information about international standards for work accident scheme and best practices from other countries as reference.

The Forum presents representatives from the government, E. Ilyas Lubis, Director for Membership and Inter-Agency Relations, BPJS Ketenagakerjaan and Wahyu Widodo, Director for Social Security, Ministry of Manpower. The Forum also presents members of National Social Security Board (DJSN) representing government, workers, employers and experts.

International standards and best practices from various countries will be presented by the Director of Global Employment Injury Programme, Anne Drouin from ILO Geneva. Ms Drouin will share her experiences and lessons learnt on the implementation of social security, particularly work injury schemes at the international level.

For further information please contact:

Grace M. Halim
ILO Staff for Social Security
Tel.: +6221 3913112 ext. 140
Email: grace@ilo.org

Gita Lingga
ILO Communications Officer
Tel.: +6221 391 3112 ext. 115
Email: gita@ilo.org