Indonesia shares progress of its social protection system reform at a global forum

JAKARTA, Indonesia (ILO News) - Member States of the ILO around the world gathered in Geneva on 24 March to discuss the progress and challenges in building social protection floors for all as part of Phase II of the Global Flagship Programme.

Anwar Sanusi, Secretary General of the Indonesian Ministry of Manpower, acknowledged the support given by the ILO in promoting policies and providing assistance to its Member States, including Indonesia, in reaching adequate levels of social protection through the Global Flagship Programme. He also shared the progress of social protection system development in Indonesia since its establishment in 2004.

We have implemented several strategies to support the reform of our social security system... We are ready to continue active discussion and collaboration with all partners to make the system more accessible and beneficial for all workers."

Anwar Sanusi, Secretary General of the Indonesian Ministry of Manpower

He highlighted the great progress made by the country in establishing a social protection system that covers a wide range of benefits, including health benefits, work injury benefits, death benefits, pension benefits, old-age saving benefits and unemployment benefits. However, he admitted that despite progress, the system is not yet fully operational to its full potential.

“We have implemented several strategies to support the reform of our social security system. However, we understand that the system still needs some improvements. Thus, we are ready to continue active discussion and collaboration with all partners to make the system more accessible and beneficial for all workers,” said Anwar during his speech.

He also emphasized the importance of reforming the social protection system to adapt to the changing world of work due to digitalization. “The digital economy and adoption of technology has drastically changed business models and created new forms of work in the labour market across various economies in all countries, including Indonesia. Social protection systems, as a result, will need to adapt to these changing contexts and demands,” he added.

The ILO’s Global Flagship Programme on Building Social Protection Floors for All (SPF Flagship Programme) was launched in 2016. The second phase of the programme works in 50 countries, aiming to achieve institutional changes and increase legal and effective social protection coverage for 60 million people. This meeting called on Member States to work together in accelerating the programme through the Global Accelerator on Jobs and Social Protection for Just Transitions.

Mia Seppo, ILO Assistant Director-General for Jobs and Social Protection, highlighted the funding needed to extend coverage to 4 billion people who are still left without social protection. “We noticed that protection gaps are linked to the insufficient investment in universal social protection. We are immensely grateful for the US$100 million that will help mobilize the second phase of flagship programme. We still need an additional US$54 million to fill the flagship resource gap,” Mia explained.

The meeting also invited representatives of workers and employers to share their perspectives on the flagship programme. Antônio de Lisboa Amâncio Vale, Deputy President of the International Trade Union Confederation (ITUC), emphasized the importance of governments and donors seeing social protection spending as investment. The ITUC’s research has shown that the investment in social protection can yield nearly twice of its value in term of economic return as it boosts employment and increases productivity and overall economic growth.

A similar opinion was also shared by Farooq Ahmad, Secretary-General of Bangladesh Employers’ Federation who emphasized the full support of businesses for the expansion of social protection floors. Despite some remaining challenges, employers were committed to joining forces for the successful implementation of ILO’s Global Flagship Programme and to contribute to a sustainable social protection system.

The meeting also included two panel discussions in which countries such as Senegal, Portugal, Lao People's Democratic Republic, Uzbekistan, China, Burundi, Burkina Faso, Cambodia, Peru and many others shared their challenges and discussed strategies for closing financing gaps. The meeting concluded with the commitment of the ILO, through its Global Flagship Programme, to continue providing assistance to its Member States in accelerating social protection extension to billions of uncovered people.