Social insurance and climate change in Indonesia: Implications for Adaptive Social Protection ambitions

Among the wide range of possible roles of social insurance, this report aims to explore the potential of social insurance schemes in addressing climate risk and minimizing the impacts of related shocks in Indonesia, and how these schemes can be expanded to provide affected workers with better protection through temporary adjustments in parameters such as benefits and qualifying conditions, as well as adjustments in operational capacity. The study will focus on three social insurance schemes of BPJS Employment including unemployment insurance scheme (Jaminan Kehilangan Pekerjaan), employment injury insurance scheme (Jaminan Kecelakaan Kerja), and pension scheme (Jaminan Pension).

This study was conducted based on literature reviews complemented by bilateral interviews and discussions with government institutions as well as tripartite consultations with workers, employers and the Government. The report consists of sections on climate change-related shocks and stresses affecting Indonesian workers and employment, an overview of the three social insurance schemes, international practices on temporary expansions in times of crisis, and the potential applications of such expansion measures to the three schemes in Indonesia.