National Conference on International Experiences of Protection against Unemployment and its Relevance for Indonesia

The establishment of employment insurance (EI) system has become a priority among national stakeholders. The political will in the government appears to be strong enough to realise the initiative.

Objectives

The seminar aims at:
  • Providing the key national stakeholders with better knowledge about international labour standards, principles and international practices of employment insurance; and
  • Promoting the national policy dialogues on employment insurance with more comprehensive information and knowledge.

Background

The establishment of employment insurance (EI) system has become a priority among national stakeholders. The political will in the government appears to be strong enough to realise the initiative. In early 2018, the Minister of Manpower committed in the parliament to conduct a study towards the establishment of EI system, while the Minister of National Planning (Bappenas) has also stated publicly that involuntarily unemployed workers should receive benefits to avoid falling into poverty.

Following up the Ministers’ statements and requests, ILO initiated to support a series of background studies and national within and among Ministry of Manpower and social partners, and to support national stakeholders to build capacity to make evidence-based discussions and finally determine the ideal employment insurance system in Indonesia. In December 2018, the National Tripartite Committee (LKS Tripnas) requested ILO to further support to design an employment insurance scheme, assess the entire social security system and national consultations. Today, the government, trade unions, and employer’s associations have continuous policy dialogues to explore policy options and designs of employment insurance system including unemployment benefits and active labour market policy.

Some countries in Asia have also experienced a similar path to launch employment insurance systems. Without publicly managed employment insurance schemes, workers often rely only on employers in the event of unemployment. However, employers’ liability schemes largely depend upon capacity of employers to pay and has no wide risk-pooling function. In particular, when it comes to bankruptcy, disasters or economic crisis which destroy the entire economies, employers often face difficulties in continuing to hire employees and paying termination allowance. Thus, those countries introduced employment insurance schemes to better protect workers and reduce business’s burdens.

To get the presentations, please visit this website: https://www.social-protection.org/gimi/ShowProjectWiki.action?id=3415&pid=3096