Indonesia

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1977 (government regulation).

Current laws: 1992 (employees' social security), 2004 (social security system) being implemented in stages, and 2011 (social security agency), implemented in 2014.

Type of program: Provident fund and social insurance system.

Note: In January 2014, the Social Security Manpower Agency (BPJS Ketenagakarjaan) replaced the Employees' Social Security System (Jamsostek). The goal is to achieve universal coverage by 2029. The first stage of the process, covering all employees, is set to be completed by July 2015.

Coverage

All employees by July 1, 2015. (Under Jamosostek, employees of firms with 10 or more employees or a monthly payroll of at least 1 million rupiah. (Employees with contracts of less than three months are covered for social insurance death benefits only).

Voluntary coverage for self-employed persons.

Special systems for public-sector employees and military personnel.

Source of Funds

Insured person

Provident fund: 2% of gross monthly earnings.

Social insurance: None.

Self-employed person

Provident fund: At least 2% of gross monthly declared earnings.

Social insurance: 1% of gross monthly declared earnings.

Employer

Provident fund: 3.7% of monthly payroll.

Social insurance: 0.3% of monthly payroll.

Government: None.

Qualifying Conditions

Old-age benefit (provident fund): Age 55.

Employment may continue.

The benefit may be deferred. There is no maximum age for deferral.

Drawdown payments: At any age if emigrating permanently, if starting work as a public employee or beginning military service, or if unemployed for at least six months after at least five years of fund membership.

Disability benefit (provident fund): Younger than age 55 with a total permanent incapacity for work as a result of a work injury. A medical doctor must certify the incapacity.

Survivor benefit (provident fund): The deceased was younger than age 55 at the time of death or aged 55 or older and receiving a periodic pension at the time of death. The benefit is paid to the spouse or, if there is no spouse, to dependent children.

Death grant and funeral grant (social insurance): Paid when the insured dies.

Old-Age Benefits

Old-age benefit (provident fund): A lump sum of total employee and employer provident fund contributions plus accrued interest is paid. Members with more than 50 million rupiah in their provident fund account may opt for a periodic pension.

Drawdown payments: The maximum lump sum is total employee and employer provident fund contributions plus accrued interest.

Permanent Disability Benefits

Disability benefit (provident fund): A lump sum of 70% of 80 months of the insured's wage in the month before the disability began is paid, plus 200,000 rupiah a month for up to 24 months.

Survivor Benefits

Survivor benefit (provident fund): A lump sum of total employee and employer provident fund contributions plus accrued interest is paid. Eligible survivors of deceased members who had more than 50 million rupiah in their provident fund account may opt for a periodic pension.

If the deceased was receiving a periodic pension, the survivor benefit is the total employee and employer provident fund contributions plus accrued interest minus the amount already paid to the deceased member.

Death grant and funeral grant (social insurance): A lump-sum death grant of 14,200,000 rupiah is paid plus 200,000 rupiah a month for up to 24 months. A lump-sum funeral grant of 2 million rupiah is paid.

Eligible survivors (in order of priority) include the spouse, children, parents, grandchildren, grandparents, siblings, or parents-in-law. If there are no eligible survivors, the benefit is paid to a person named by the deceased; if there is no named survivor, only the funeral benefit is paid to the person who pays for the funeral.

Benefit adjustment: Social insurance benefits are adjusted every two years.

Administrative Organization

National Social Security Board provides general supervision.

Social Security Manpower Agency (BPJS Ketenagakarjaan) (http://www.bpjsketenagakerjaan.go.id) collects contributions, administers benefits, and manages the investment funds.

Sickness and Maternity

Regulatory Framework

First law: 1957.

Current laws: 1992 (employees' social security), 2004 (social security system) being implemented in stages, and 2011 (social security agency), implemented in 2014.

Type of program: Social insurance system.

Note: In January 2014, the Social Security Health Agency (BPJS Kesehatan) replaced the Employees' Social Security System (Jamsostek). The goal is to achieve universal coverage by 2029. The first stage of the process, covering all employees, is set to be completed by July 2015.

Coverage

All employees by January 1, 2014. (Under Jamosostek, employees of firms with 10 or more employees or a monthly payroll of at least 1 million rupiah.)

Exclusions: Employees with labor contracts of less than three months. Employees covered by company-provided health insurance plans (more comprehensive than the benefits provided by BPJS are exempt from BPJS until 2019.

Voluntary coverage for self-employed persons.

Special system for civil servants, civil service pensioners, military and police pensioners, veterans, and national independence pioneers.

Source of Funds

Insured person: 0.5% of monthly earnings (1.0% in July 2015). An additional 1% for each person for family members and dependents.

The maximum earnings used to calculate contributions are 4,700,000 rupiah.

Self-employed person: 25,000 to 59,500 rupiah a month.

Employer: 4% of monthly earnings.

The maximum earnings used to calculate contributions are 4,700,000 rupiah.

Government: None.

Qualifying Conditions

Cash sickness benefits: No benefits are provided.

Cash maternity benefits: There is no minimum qualifying period.

Maternity benefits: Maternity and paternity benefits are paid.

Medical benefits: Must be currently covered by BPJS.

Sickness and Maternity Benefits

Sickness benefit: No statutory benefits are provided.

Maternity benefit: 100% of the insured's normal wages are paid for three months.

Paternity benefit: 100% of the insured's normal wages are paid for two days.

Workers' Medical Benefits

Medical benefits include primary and specialist outpatient care; hospitalization; medicine; and emergency, dental, and eye care. Eyeglasses, hearing aids, and prostheses. Insured persons must register with a primary care provider who is under contract with BPJS. A doctor's referral is required for access to specialist and inpatient care (except for emergencies).

Services at community health centers are set at 3,000 to 6,000 rupiah; 100,000 rupiah for inpatients. Clinics and hospitals are required to pay any extra medical costs themselves. There is a standard cost for ophthalmic services, orthopaedic surgery, neurosurgery, outpatient treatment.

The cost of maternity care for up to three children, up to 500,000 rupiah each, is paid.

Inpatient care is provided for up to 60 days a year.

Dependents' Medical Benefits

Medical benefits for dependents: Medical benefits for dependents are the same as those for the insured.

Eligible dependents include the dependent spouse and up to three dependent children (unmarried and unemployed) younger than age 21.

Administrative Organization

National Social Security Board provides general supervision.

Social Security Health Agency (BPJS Kesehatan) (http://bpjs-kesehatan.go.id) collects contributions, administers benefits, and manages the investment funds.

Work Injury

Regulatory Framework

First law: 1951 (workmen's compensation).

Current law: 1992 (employees' social security) and 2011 (social security agency), implemented in 2014.

Type of program: Social insurance system.

Note: In January 2014, the Social Security Manpower Agency (BPJS Ketenagakarjaan) replaced the Employees' Social Security System (Jamsostek).

Coverage

All employees by July 1, 2015. (Under Jamosostek, employees of firms with 10 or more employees or a monthly payroll of at least 1 million rupiah. Employees with contracts of less than three months are covered for social insurance death benefits only).

Voluntary coverage for self-employed persons.

Special system for public-sector employees.

Source of Funds

Insured person: None.

Self-employed person: 1% of monthly declared earnings.

Employer: The total cost; contributions vary according to five classes of risk: 0.24% of monthly payroll (class I); 0.54% (class II); 0.89% (class III); 1.27% (class IV); or 1.74% (class V).

Government: None.

Qualifying Conditions

Work injury benefits: Must be assessed with a partial or total disability before age 55. There is no minimum qualifying period.

Temporary Disability Benefits

100% of the insured's wage in the month before the disability began is paid for the first four months; 75% for the next four months; 50% thereafter until rehabilitation or the determination of permanent disability.

The degree of disability is based on a health examination by a medical doctor.

Permanent Disability Benefits

Permanent disability benefit: A lump sum of 70% of 80 months of the insured's wage in the month before the disability began is paid, plus 200,000 rupiah a month for 24 months.

Partial disability: A lump sum is paid of 80 months of the insured's wage in the month before the disability began multiplied by the assessed degree of disability according to a schedule in law.

The degree of disability is based on an examination by a medical doctor.

Workers' Medical Benefits

Medical benefits include medical treatment, hospital care, dental and eye care, rehabilitation and prostheses.

The maximum cost of medical treatment and hospital expenses is 12 million rupiah for each accident.

From 750,000 rupiah up to 2,000,000 rupiah is paid for transportation costs from the place of the accident to the hospital are provided depending on the method of transport used.

Survivor Benefits

Survivor benefit: A lump sum of 60% of 80 months of the deceased's wage in the month before death is paid, plus 200,000 rupiah a month for 24 months.

Eligible survivors (in order of priority) include the spouse, children, parents, grandchildren, grandparents, siblings, and parents-in-law. If there are no eligible survivors, the benefits are paid to a person named by the deceased; if there is no named survivor, only the funeral grant is paid to the person who pays for the funeral.

Death grant: A lump sum of 14,200,000 rupiah is paid plus 200,000 rupiah a month for up to 24 months.

Funeral grant: A lump sum of 2 million rupiah is paid to the survivor eligible for the survivor benefit; if there is no eligible survivor, the funeral grant is paid to the person who pays for the funeral.

Administrative Organization

National Social Security Board provides general supervision.

Social Security Manpower Agency (BPJS Ketenagakarjaan) (http://www.bpjsketenagakerjaan.go.id) collects contributions, administers benefits, and manages the investment funds.