1.3 million Jakarta employees targeted in insurance program

The Social Security Management Agency’s occupational health division (BPJS Ketenagakerjaan) aims to cover 4.7 million workers in the formal sector, most of whom were registered with Jamsostek.

BPJS Ketenagakerjaan Jakarta branch head Hardi Yuliwan said on Monday that of the 4.7 million targeted, 3.4 million workers in more than 41,000 companies had been directly registered with BPJS Ketenagakerjaan.

“As many as 72 percent of companies [operating in Jakarta] have registered their employees as beneficiaries of the insurance. Of the total 4.7 million targeted, 3.4 million have been insured,” he told reporters at City Hall.

According to Deputy Governor Basuki “Ahok” Tjahaja Purnama, Jakarta has the highest number of workers participating in the four occupational social security programs.

The four programs are occupational accident benefits, old-age risk benefits, pension benefits and death benefits.

Despite no deadline being set, Hardi encouraged all companies, including small and medium enterprises (SMEs), to register their workers with the four national programs.

“The procedure states it is companies that register their workers, so the latter should not do anything, except for those working in the informal sector who can register as a group or an association,” he explained.

“A government regulation recently issued to enforce Law no. 24/2011 on social security providers stipulates that authorities can inspect companies reluctant to register their workers,” Hardi added.

Jakarta Manpower Agency head Priyono said sanctions would be imposed on companies deliberately refusing to comply with the law and many related government and presidential regulations.

Priyono, however, declined to elaborate on the details.

The deputy governor said sanctions would only be imposed once the national occupational social security programs took full effect in July 2015.

The government is introducing its national social security system in stages, beginning with the introduction of national health insurance (JKN) in January this year.

The premium of the occupational accident program is set between 0.24 and 1.74 percent of workers’ monthly salaries, while the premium of the death program is set at 0.3 percent. The premiums were jointly paid by employers and their workers.

The premium of the pension program is set at 5.7 percent of workers’ monthly salaries, 3.7 percent of which is covered by employers while the remaining 2 percent is by workers.

Indonesian Employers Association (Apindo) Jakarta chapter chairman Suprayitno said employers supported the programs because they were aimed at protecting workers and were expected to improve their productivity.

“The benefits are clear, the fees are rational and the programs are basically acceptable. There are, however, some articles that need further explanation, particularly regarding terms and conditions when there is a labor dismissal case,” he said, adding “there should be a clear regulation on whether it is necessary to provide severance payments for workers dismissed for committing crimes.”

According to the Health Ministry’s BPJS directorate, 8.5 million employees, including Jamsostek holders and their families, have registered as members of the JKN program. (www.thejakartapost.com)