BackgroundAs of July 1, 2015, the five social security schemes mandated by the National Social Security law (SJSN, No.40/2004) were officially launched in Indonesia. BPJS Kesehatan,(Health) had started its operation since January 2014, while BPJS Ketenagakerjaan (work-related accident benefits, old-age, invalidity and survivors’ pensions, old-age lump sum and death benefits) were fully operationalized on July 2015. These schemes replaced existing fragmented programmes designed for and targeting specific groups of the population with the new objective of achieving universal coverage through contributory and non-contributory mechanisms, as mandated by the National Social Security law.
As re-affirmed by the tripartite participants to the High level Dialogue on Employment, Industrial Relations and Social Security organized in Jakarta, in August 2016, a concerted approach through social dialogue is central to achieve inclusive growth and decent work for all. The final recommendations from the tripartite ILO constituents included a call to strengthening national social security institutions and reviewing pension policy and regulation.
The “social security dialogue and capacity development” workshop offers a forum to support the implementation of the above mentioned recommendations, through knowledge sharing on different models and experiences as well as interactive exchanges with a focus on pension and short-term social security benefits. ILO’s perspective on the current design of the pension scheme (actuarial assessment) and related policy recommendations will be discussed.
ObjectivesThe main aim of the workshop is to support social security dialogue between the key stakeholders of the National Social Security System in Indonesia by:
- Enhancing the understanding of the principles of social security, including social insurance. This will include exploring and discussing the reasons why and how social insurance can better protect workers and at a lower cost for employers.
- Initiating dialogue on the current provisions of the pension scheme with ILO’s assessment of the scheme’s benefits adequacy and financial sustainability (actuarial assessment)
- Sharing international experiences on the process to introduce short term social security benefits and how such schemes can contribute to raising awareness about social security in general