To reform Indonesia’s social security system, the government established the Social Security Agency (Badan Penyelenggara Jaminan Sosial/BPJS) through the issuance of Law No. 40 of 2004 on Indonesia’s National Social Security System in conjunction with Law No. 24 of 2011 on Social Security Agency.
According to Article 5 and Article 6 of Law No. 24 of 2011 there are two program of BPJS in Indonesia, one managing health care namely BPJS of Health and the other securing the employment social security such as accident, old age,pension and death of employees which called BPJS of Employment.
Employers of an enterprises have an obligation to gradually register their employee on Indonesia’s National Security System. The registration is conducted by providing their correct and complete personal information for both of aforementioned BPJS Programs.
In addition, as stipulated in Article 16 of Law No. 24 of 2011 that every person, other than the employer, worker, and the acceptor of premium assistance, which meets the participants requirements on the Indonesia’s National Social Security Sytem also must register theirselves and their family to BPJS Program in in accordance with the BPJS that is taken.
Every person must participate in the BPJS, as clearly defined by Article 1 point 4 of Law No. 24 of 2011, participant is every person, including foreign worker who has worked for at least 6 (six) months in Indonesia who has paid the premium of BPJS Programs.
Further stipulated by Article 6 of Law No. 24 of 2011 that every person, including Foreign Worker who has worked for at least 6 (six) months in Indonesia, must become a participant of Social Security Programs.
Consequently, Foreign Worker who has worked for at least 6 (six) months in Indonesia must participate in BPJS of Health and BPJS of Employment.
C. Participation Deadline
BPJS for Health
The deadline to participate in the BPJS of Health is stipulated on Article 6 of Presidential Regulation No. 111 of 2013 on Amendment to Presidential Regulation No. 12 of 2013 on Health Security. The first participation phase of BPJS of Health was implemented on 1 January 2014 for the following participants:
Participants of Indonesia Health Insurance (ASKES) Public Company’s and/or Manpower Social Security (JAMSOSTEK) Public Company’s health insurance and their family
The due date for participating on BPJS of Health for State Owned Company and Small, Medium, and Large Enterprises was on 1 January 2015. Further, Micro enterprises also must participate in the BPJS of Health at the latest on 1 January 2019. Then, for worker who does not receive salary and non-worker also must participate in the BPJS of Healt at the latest 1 January 2019.
D. Employment Security Program
All employers of Micro, Small, Medium and Large sized enterprises in Indonesia must register their employees to BPJS of Employment on 1 July 2015, as stipulated by Article 5 and Article 6 of Presidential Regulation No. 109 of 2013 on Participation Phasing of Social Security Program.
Administrative sanctions are stipulated on Article 17 of Law No. 24 of 2011. Employers other than the State Administrator who does not follow the following requirements will be subject to administrative sanctions:
Administrative sanctions could be in a form of written warning, fine, and cannot acquire certain public service such as can not processing business license, construction license, ownership of land permit, and building entitlement evidence. Those administrative sanctions are also applicable for the following person:
1. Law No. 40 of 2004 on National Social Security System
2. Law No. 24 of 2011 on Social Security Agency (BPJS)
3. Presidential Regulation No. 111 of 2013 on Amendment to Presidential Regulation No. 12 of 2013 on Health Security
4. Presidential Regulation No. 12 of 2013 on Health Security
5. Presidential Regulation No. 109 of 2013 on Participation Phasing of Social Security Program
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