Feasibility study on an unemployment insurance system for Indonesia: Institutional and operational aspects

This feasibility report was prepared and submitted to the Government of Indonesia in 2020 to provide advice and guidance on the planning and implementation of an effective employment insurance (EI) scheme for Indonesia.

In January 2018 Indonesia’s Minister of Manpower committed in Parliament to conducting a serious study towards the establishment of a mandatory employment insurance (EI) system (Ruck and Tsuruga, 2022). During a subsequent high-level tripartite dialogue with the ILO, workers and employers also confirmed their willingness to move this agenda forward and requested the ILO to assess conditions to launch unemployment benefits under the Decent Work Country Program 2018–2022.

A series of factfinding missions and consultation workshops were held in Jakarta during 2018 as a result of stakeholder requests. The ILO focused on the development of a national dialogue to discuss design elements of an effective EI system as well as administrative issues. On 4 December 2019, a meeting was held by the national tripartite committee, where it was decided to conduct a feasibility study on the implementation of an EI system for Indonesia. With the above in mind, this feasibility report seeks to provide advice and guidance on the planning and implementation of an effective EI scheme for Indonesia.