Background

Despite the current social security system (SJSN) law of 2004 that has to be implemented by 2009 calls for universal social security coverage in both formal and informal economies in Indonesia. Only a small portion of the Indonesia population of 220 million is covered by formal social security system, that cover only some of the contingencies set out in ILO Conventions.

To date only 17 percent of working population has employment-linked systems of contributory social insurance. The rest of population has not been protected by formal system of social protection in the country when they face adverse events affecting their livelihood, particularly in the informal economy.

In 2006, nearly 64 percent of the productive workforce in Indonesia worked in the informal economy (60.7 out of 95.1 million workers). The majority of the informal workers is rural (65 percent worked in agriculture), but increasingly it becomes an urban phenomenon. This underlines the importance of the social security coverage for informal workers, and the ILO has been paying attention to this issue.

Social security in the formal economy is generally arranged through the permanent employer who also pays an employer’s share for the JAMSOSTEK premium. However, in the informal economy there is often no formal, permanent employer and the first question is thus how these workers can be approached.

Given the fact of the complexity and the challenge in extending social security to the informal economy workers that is predicted will increase as the impact of global financial crisis, ILO and Jamsostek undertook a survey of feasibility study to assess which sector of informal economy workers can be targeted by social insurance scheme and their ability and willingness to pay for any contributory scheme is crucial.

As the survey completed, preliminary finding of the study plan to be discussed among relevant stakeholders with relevant stakeholders (Ministry of Manpower, National Social Security Provider of Jamsostek, Social Security Council, workers and employers organization, informal workers association and university) to get a feedback for further finalization.

Objective

The overall objective of the seminar is to share preliminary finding of the survey on the feasibility of extending social security to informal economy workers and analysis on the interface between social security and informal economy to be able to better target and reach the informal workers with the following as well as to discuss the way forward on follow-up activities of the study.

Participants

60 (Sixty) participants of government, employers’ and workers’ representative, NGOs, international organization and university are expected to attend the seminar.