B&A News Brief – Indonesia Social Security Agency

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As of 1 January 2014, Social Security Administrative Bodies (Badan Penyelenggara Jaminan Sosial/BPJS) has been in operation. BPJS is an agency established for the implementation of social security programs as regulated under Law No. 40 of 2004 on National Social Security System (Sistem Jaminan Sosial Nasional or SJSN).

As BPJS has been effectively operating, PT Jamsostek (Persero) has transformed BPJS to consist of:
a. Social Security Administrative Body for SJSN Health Care Program (BPJS Kesehatan); and
b. Social Security Administrative Body for SJSN Employment Program (BPJS Ketenagakerjaan).

Social Security Administrative Body for SJSN Health Care Program will qntlister the health care program. While Social Security Administrative Body for SJSN Employment Program will qntlister the following programs:
a. Occupational Accident Security (Jaminan Kecelakaan Kerja);
b. Death Security (Jaminan Kematian);
c. Old Age Security (Jaminan Hari Tua); and
d. Pension Security (Jaminan Pensiun)

As stipulated in Article 14 Law No. 24 of 2011 concerning Social Security Administrative Bodies, every individual, including a foreign worker who has worked for at least 6 (six) months in Indonesia, has to participate in the social security program qntlistered by BPJS.

In Indonesia, the previous health care system includes three different agencies that qntlister health care programs. They are: Asuransi Kesehatan (Askes – for civil servants), Jamsostek (for the private sector), and Asabri (for the police and army). Under the new system, which took effect as of 1 January 2014, they were transferred under a single health care system.

a. by 1 January 2015, for State-Owned Enterprises, as well as Large, Medium and Small Scale Business Enterprises;
b. by 1 January 2016, for Micro Scale Enterprises; and
c. by 1 January 2019, for self employed and private person.

To achieve such target, the government set sanctions as regulated in the Government Regulation No. 86 of 2013 concerning Procedure to Impose Administrative Sanction to Employer Except Public Official and Every Individual, Except Employer, Employee and Recipient of Contribution Subsidy in the Implementation of Social Security.

Under the said Regulation, every employer, individual, employee and recipient of contribution subsidy must register themselves and their family members as participants of BPJS, otherwise he/she can be imposed with the following qntlistrative sanctions:
a. Written warning;
b. Fine; and/or
c. Exclusion of certain public services.

The new system is still having a lot of shortages. One of the shortages is that this new system brings confusion especially for companies who are already providing a better health care program for their employees. It would be challenging, should they have to be transferred to the new system under BPJS, which provides lesser benefits for the health care user/employee.

Nevertheless, the government, including the President, said that they are committed to monitor and improve the new social security system qntlistered by BPJS.

It is hoped that the implementation of the new social security system qntlistered by BPJS will run smoothly and bring more benefits to the citizens.
to SJSN Health Care Program is mandatory for all Indonesian residents. The membership registration to SJSN Health Care Program must be done by the employers by the following schedules:

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For further information, please contact: lawyers@budidjaja.com.

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