Social Security Action Committee

After a more than year-long bitter struggle, the Indonesian labour movement won the fight to reform the social security system, under the banner of the Social Security Action Committee (KAJS).

INDONESIA: October 28 will be engraved into the history of the Indonesian labour movement as a victorious day in the fight to protect Indonesian workers and grant them social security. On the late evening of this day the Indonesian House of Representatives finally passed the Social Security Provider Bill into law, allowing for full health and job protection for all citizens.

Two social security providers (BPJS) will be created. They will start operation in 2014. BJPS I will directly manage health care for all people in Indonesia. The responsibilities and activities of the existing social insurance company Jamsostek Ltd will be transferred to the new organization. BPJS II will manage occupational accidents, deaths, and old age pension in the formal sector beginning on January 1, 2014.


The journey leading to this hard fought victory was riddled with obstacles, challenges and at time uncertainty. Mass demonstrations by workers unseen of in the days of the Suharto regime proved that when workers make up their minds nothing can stop them from fighting for their rights. Despite all impediments, the gallant leadership of KAJS never once retreated.

Said Iqbal, President of KAJS and IMF affiliate Federasi Serikat Pekerja Metal Indonesia (FSPMI) thanked the IMF for its support during this struggle. He said that the timely support gave his committee members the courage and confidence to move forward and win the battle. He stressed the need to monitor the implementation of this law that would benefit the people and workers in Indonesia.

The day the bill was debated in the House of Representatives thousands of workers gathered and camped outside the Parliament. When news broke out that the house had passed the bill into law, thunderous applause and screams of "HIDUP BURUH" greeted this historic victory.

IMF General Secretary Jyrki Raina, in congratulating the FSPMI and Lomenik for this victorious struggle to protect Indonesian workers under social security said that it was mobilization of workers under the KAJS that won the fight. He stressed that People's power and determination demonstrated by Indonesian workers is a source of inspiration for workers all over the world. He also assured IMF's support in ensuring the implementation of this law in 2014

P. Arunasalam

Read more »

Posted in: Social Security

Social Security System Law no. 40/2004

Social Security System  Law no. 40/2004

Social Security System as stipulated in Law no. 40/2004 is social security in the form of social insurance and social assistance or a combination of both . Social insurance means every person who works and who employ other people , whether in formal or informal sector as long as he is able to compulsory mengiur each month in accordance with a certain percentage for social security .

 While the social assistance means the government will provide tuition assistance for the poor or people can not afford . The point SJSN must ensure that all people be it civil , formal or informal workers , farmers , fishermen , small traders and so get the benefit (benefits ) are equal to social security, which means both live in dignity .

National Social Security covers health insurance , life insurance , accident insurance , old age insurance and pension guarantees . The National Social Security Act established eleven principles that became the reference and the foundation in carrying out this national social security system , namely

1. Mutual cooperation. Mutual inter - participant with the obligation to pay dues ( which helps high-income low income , who are able to help the less fortunate , which helps low-risk high-risk , healthy and helping the sick ) .

 2. Nonprofit . Management is essential to providing benefits to participants , and not merely the commissioner who usually come from the government .

3. Openness . Information should be easily accessible to all residents .

 4. Prudence. Carefully executed , thorough , safe and orderly .

 5. Accountability . Must be accurate , and reliable .

6. Portability . Guarantee sustainable development in all regions of Indonesia . Principle, participants should always be safe (security ) whenever and wherever he is in the jurisdiction of Indonesia . Participants who change jobs or relocate residence in the territory of the Unitary Republic of Indonesia
should always receive the benefit .

7. Participation is mandatory . The entire population into Social Security participants gradually.

8. Trust fund . Funds collected from participant contributions are deposited ( rather than income is not the budget) to the Administering Agency for Social Security to be managed as well as possible for the welfare of participants .

9. Fund management results . The result is returned to the interests of participants .

10. Social insurance . Rich and poor , healthy, sick , young and old ,low and high risk are all entitled to social security .

11. Equity . The similarity in obtaining services .

Read more »

Posted in: Social Security

Indonesian Social Insurance

Indonesian Social Insurance

KAJS since before the bill was passed as a bill the House Initiative on July 29, 2010 until now still wants PT Jamsostek , PT TASPEN , PT ASABRI , and PT Askes transformed into 4 ( four ) BPJS  established by the Act .


1. BPJS HEALTH ;
The transformation of PT Askes , JPK Program ( Health Care Insurance ) PT Jamsostek , JPK JPK TNI and National Police and Jamkesemas Program ; to conduct Health Insurance Program for all Indonesian people , without exception , without discrimination and limitation

2. BPJS LABOR ;
The transformation of the PT JAMSOSTEK conducts programs to JKK ( Security Work accident ) , JHT ( Old Age Security ) , JP ( pensions ) and JKm ( Security Death ) for the workers / laborers formal , informal , including farmers , fishermen , domestic workers , TKI , and participants are able to independently ( Entrepreneurial ) .


3. BPJS civil servants;
The transformation of the PT TASPEN ; to hold Pro - gram JKK , JHT , JP and JKm for civil servants including the PPT ( Employee No Fixed ) , PHL ( Daily Staff Lepas ) and Power Honorer employed in government offices and schools. ( Note : The government employs many PTT , PHL and Power Honorer unlawful manner . Very many who already have a service life of up to tens of years without appointed as civil servants) .

4. BPJS military - police ;
The transformation of PT ASABRI ; to organize programs JKK , JHT , JP and JKm for Army personnel and police members including warakawuri , veterans , and others .

Read more »

Posted in: Social Security

Indonesia national social security system

Indonesia national social security system

Towards the implementation of the SJSN Law

As of October 2007, the National Social Security Council has not been established yet.
Reportedly, only the Chairman of the Council (Deputy of Coordinating Ministry of Social
Welfare - MENKOKESRA) has been appointed by the President, but the other Council
members (15 members from tripartite stakeholders and social security experts) have not
been appointed. However, preparatory works on social security and social assistance
issues are going on in relevant Ministries.


There was a case at Constitutional Court on the interpretation of state monopoly of
social security benefits in Article 5 of SJSN Law. From several sources, the court decision
was that local government can establish organisations that provide social security
benefits but that the article SJSN act in question remains unchanged.

Although there is a general recognition that the SJSN Law is a first major step to
develop a comprehensive national social security system in Indonesia, so far it has failed
to give meaningful impact except for health insurance cover for the poor. The significant
delay in the action to implement the Law has revealed seeming lack of coordination and
real commitment. It is hoped that the Government will develop the Road map as a
priority matter so that the implementation of the national social security system can be
envisaged at the earliest stage.


Reference
ILO, Social Security in Indonesia : Advancing the Development Agenda, 2008

Read more »

Posted in: SJSN

Implementation of the SJSN Law

 Implementation of the SJSN Law


The SJSN Law provides only a framework of the ultimate national social security system
in Indonesia

(That is why this law is called an “umbrella law”).

It does not mention the
transition measures from the existing segmented schemes to the ultimate system.

A number of substantial issues still remain to be worked out in the future. There is a vital
need to address the following issues:

(a) There needs to be a mid-term implementation plan (Road map) defining the
process of implementing the SJSN Law in stages. The Road map should clarify
the organisational structure of the SJSN and its impact on the existing social
security schemes. In line with the road map, strategic action plans should be
developed that describe the goals to be achieved for each stage of
implementation. It is critical that the road map and action plans should be based
on high degree of consensus and commitment at all levels of administration. The
National Social Security Council should monitor and evaluate the implementation
of the SJSN Act in line with the road map and action plans.

(b) Detailed provisions of the social security programmes need to be determined in
the Presidential Regulations. This will involve the development of policy options
for the benefit design (including the determination of the benefit parameters,
and the adjustment of the possible duplication of old-age benefits and pensions
benefits), determination of the contribution rates based on actuarial projections,
financing mechanism (including the determination of the adequate reserve level
and investment guidelines), and organisational arrangements.

(c) The administrative capacity for the existing social security organisations should
be strengthened to improve the compliance of the workers in the formal
employment sector and to prepare for the expansion of the workers in the
informal economy.

Read more »

Posted in: SJSN

National Social Security System (SJSN) (Law No. 40 of 2004)

National Social Security System (SJSN) Law

(Law No. 40 of 2004)

In 2004, there was a major legislative achievement in the development of national social
security system in Indonesia. In 2002, a Task Force was created under Presidential
Decree No. 29 of 2002 to prepare draft legislation and a supporting academic paper for
a national social security system to provide more effective social security to all. Over
three years’ discussion, the Task Force developed a draft bill and submitted it to the
Parliament (DPR) in early 2004. On 28 October 2004, the Parliament approved the bill
after having made a number of revisions during the Parliament discussion.

The law provides a basic framework for the development of the social security and social
assistance and the detailed rules will be specified in the subsequent Presidential
Regulations. Key features of this law are summarised as follows:

• The law stipulates the principles and goals of the National Social Security
System. For the implementation of the National Social Security System, the law
stipulates the establishment of a National Social Security Council under the
President. The Council will be composed of 15 members representing the
Government, social security experts and employers’ and workers’ organisations
and its main function is to formulate the policies and provide supervision for the
implementation of the National Social Security System.

• The law anticipates the achievement of the universal coverage in a phased
manner. The law only states that it is mandatory for employers to enrol their
employees to the social security schemes and that the Government will provide
social assistance to the poor. The explanation notes to the law states that
“Although membership is mandatory for all citizens, its implementation will take
place in accordance with the economic capacity of the people and the
Government as well as the feasibility of the programme. The first stage will start
with workers in the formal sector, in parallel with voluntary membership of the
informal sector workers, including farmers, fishermen and the self-employed.”

• The existing four social security schemes (Jamsostek, Taspen, Asabri and Askes)
will continue to operate as social security carriers but the legal status of these
schemes will be changed from Persero (profit-oriented limited liability state
enterprise) to a not-for-profit, social security fund within 5 years transition period
i.e. by 2009. Additional social security carriers can be created as needed. The
law requires that the financial accounts of different benefit programmes should
be managed separately and prohibits the inter-programme fund transfer.

• The scope of the law covers five social security programmes, namely: (i) health
insurance, (ii) employment injury, (iii) old-age (provident fund), (iv) pensions,
and (v) death benefits. Furthermore, the law states that the government will
develop the social assistance for the poor and economically disabled, but its
details are entrusted to the Presidential Regulations that follow.

• With respect to financing, the law only stipulates that the contributions for the
social security programmes should be paid jointly by the employers and
employees but does not specify the contribution rates or how contributions are
shared between employers and workers.

The Government will subsidise the contributions concerning the social assistance
for the poor and the economicallydisabled.

In the first phase, the Government provides health insurance for the
poor and alike (the government allocated Rp. 3.9 trillion for 2005).

Taken from : ILO

Read more »

Posted in: SJSN

SHAME ON YOU MR SBY

SHAME ON YOU MR SBY

Indonesian and global unions reject speech given by Indonesian President Yudhoyono at the International Labour Conference on June 14, stating it does not reflect the reality of the situation in Indonesia, and call for comprehensive social security for all.

GENEVA/INDONESIA: Indonesian unions yesterday criticized their government for not ensuring comprehensive social security for all Indonesian people as mandated in the Global Jobs Pact that was adopted by the International Labour Organization in 2009 and supported by the Indonesian government.
The unions' criticism was in response to an address given by the President of Indonesia, Susilo Bambang Yudhoyono, to a special session of the 100th International Labour Conference (ILC) on June 14, 2011 on the effects of the global economic crisis.

In a statement submitted to the ILC by Indonesian trade unions and supported by the International Metalworkers' Federation (IMF), the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) and the International Textile, Garment and Leather Workers' Federation (ITGLWF), the unions demanded that the Indonesian government comply with the Global Jobs Pact by providing comprehensive social security for all Indonesian people.

The statement points out that, "the people of Indonesia continue to face problems of low wages which are not comparable with the needs of a decent standard of living, unsafe working conditions with the expansion of contract work and outsourcing and the absence of comprehensive social security for all people."
"In the context of social welfare, Indonesia is the most backward country in Southeast Asia in terms of delivering comprehensive social security for their people, in contradiction to the second portfolio of the Global Jobs Pact itself to "build a social protection system"," continues the statement.

The unions argue that the existing Constitution of Indonesia and supporting legislation provides the basis for providing five social insurance programs covering health and accident insurance, pensions, retirement security and life insurance, but require the government to re-orientate the responsible state agencies to function on a not for profit basis.

The statement, signed by nine Indonesian trade union organizations including IMF affiliated Indonesia Federation of Metal Workers' Unions (FSPMI), are members of the Action Committee for Social Security ( KAJS ) which is actively campaigning in Indonesia for improved social security, particularly health insurance for life and a mandatory pension fund for all.

Adequate provision for social security particularly for the ever expanding number of workers in precarious forms of employment is one of the issues that will be discussed at the IMF Central Committee taking place in Jakarta, Indonesia in December 2011.Jun 15, 2011 – Anita Gardner

Source : 
http://www.imfmetal.org 
antara photo

Read more »

Posted in: Social Security

Indonesian Workes Demand for better social security ( KAJS )

Indonesian workers march for better social security and against precarious work

More than 10,000 Indonesian workers marched in the streets of Jakarta demanding social security reforms and abolishment of precarious work on February 6, 2011.( KAJS BPJS )

INDONESIA: The demands for the reform of social security and the fight against precarious work reverberated from the loud speakers as thousands of workers who are members of IMF affiliate the Federasi Serikat Pekerja Metal Indonesia (FSPMI) took to the streets. This massive demonstration, which coincided the opening of the fourth FSPMI Congress, was attended by well over 10,000 workers.
Social security and the fight against precarious work are the burning issues for Indonesian labour. IMF General Secretary Jyrki Raina and Regional Representative Arunasalam.P joined the peaceful march which was well organised with adequate security from the unions own security apparatus called Metal Guard.

FSPMI President Said Iqbal, from atop a truck spoke to the workers. He said "that should the government fail to reform the social security system the Indonesian unions will call for a nationwide strike on May 1st." He chided Indonesian President Susilo Bambang Yudhoyono for his failure to reform the social security system and control precarious employment that spreads like wild fire and burns down permanent and regular employment. The flag and poster carrying workers joined in chorus to the shouts of "Hidup Buruh and Hidup FSPMI", which means long live workers and FSPMI.

IMF General Secretary Jyrki Raina in his address at the union's congress opening assured them that the IMF will continue to support the FSPMI in their struggle for social justice, improvement in social security and fight against precarious work. Raina announced that this subject will be one of the themes for discussion at IMF's Central Committee, taking place in Jakarta in December 2011.

Dr. Ribka Tjiptaning, a popular member of parliament echoed the voice of the workers and said that should the government fail to reform the social security laws she would join the demonstration and strike on May 1st.Feb 07, 2011 – P. Arunasalam

Read more »

Posted in: Social Security

SBY Found Guilty By Indonesian Court

SBY Found Guilty By Indonesian Court

Indonesia’s National Court in Central Jakarta finds Indonesian President, Vice President, Head of Parliament and eight Ministers guilty of not implementing the Social Security law for the protection of workers

INDONESIA:  Indonesia’s highest court in a landmark and unprecedented decision found the Indonesian President, Vice President, Head of Parliament and eight Ministers guilty of not implementing the law on Social Security (UU SJSN and RUU BPJS).

After a long drawn struggle to reform the social security system in Indonesia, a coalition of trade unions and non-governmental organisations called Social Security Action Committee (KAJS) led by IMF affiliate the Federasi Serikat Pekerja Metal Indonesia (FSPMI), embarked on seeking legal redress for social security protection for workers in the formal and informal sector. The complainants named the President, Vice President, Head of Parliament and eight Ministers as defendants.
The Court after twenty seven hearings found:

1. The respondents collectively guilty of not implementing the two Social Security laws
2. The Court declared and ordered that the defendants to implement the Social Security law through the introduction of regulations for the formation of a National Social Security System
3. Awarded cost amounting to IDR 2,181,000 (US$230)

Said Iqbal, FSPMI President and Chairman of KAJS said that this is a clear victory and that for the first time the courts have made such a courageous decision in favour of working people in Indonesia. He said that this is a milestone for workers struggle for social justice. However, he also expressed caution on what the government might do next.

According to Said Iqbal, the Indonesian President should implement the social security laws and provide social security protection for all people, provide social pension for workers in the formal sector and establish trust fund body to manage the social security funds.

On July 22 when Parliament met to consider the Social Security law, the FSPMI and KAJS organized mass demonstrations with participation of 10,000 people in front of Parliament and President Palace to demand the implementation of the court decision. The result of the July 22 meeting is that the President of the Republic Indonesia and the Parliament agreed to prolong discussion of the law on social security (RUU BPJS) for another two months and the final decision will have to be taken by October 21, 2011.

Said Iqbal, thanked the IMF for its continued support and stressed that in 2012 ILO would be debating social security protection and it is an ideal platform for such working class struggle for social justice. He said that the struggle is far from over and KJAS needs all the support that could be mustered.

IMF General Secretary Jyrki Raina in congratulating IMF affiliates the FSPMI and Lomenik said: "This court victory is an important landmark in the campaign of the Indonesian unions to extend social security to precarious workers. KAJS is a social alliance that fights for the benefit of all citizens and an excellent example to others of how to join forces for greater influence."Aug 01, 2011 – P. Arunasalam

Source : http://www.imfmetal.org

Read more »

Posted in: Social Security

Malaysian Social Security ( Jaminan Sosial di Malaysia )

Social Security in Malaysia

Disability and pension

( Contoh  Jaminan Sosial di Malaysia )

Social Security is provided in Malaysia by SOCSO, the Social Security Organization. At the same time the Employment Provident Fund (EPF) supplys benefits which are predominantly for retirement purposes, but also provides withdrawal schemes for specific purposes.

The contribution to both schemes the SOSCO and the EPF are compulsory, this means every employee and employer is obliged to pay a certain amount of the employee's monthly wage into these funds.
Other benefits, such as maternity and sickness, are covered by the labour law under the Malaysian Employment Act of 1955.

Disability benefits – SOSCO

The SOSCO, whose Malaysian term is PERKESO (Pertubuhan Keselamatan Sosial), offers two insurance schemes: The Employment Injury Insurance scheme and the Invalidity Insurance scheme. The rate of the employer's contribution is 1,75% of the employee's monthly wage for both schemes (1,25% for Employment Injury and 0,5% for Invalidity) while the worker contributes 0,5% to Invalidity Insurance scheme only.
The SOSCO covers industrial accidents, occupational diseases, accidents, invalidity or death. Further benefits, including further specific benefits.
Until a couple of years ago foreign workers had not been covered by the Social Security Organisation. Now, they are protected under the Worker's Compensation Act 1952 while the SOSCO still only covers Malaysian workers and permanent residents. The employer contributes RM 86 for each foreign worker per year to this scheme which covers employment as well as non-employment injuries of the foreign worker.

Retirement benefits – EPF

The Employment Provident Fund, known in the Malay term as KWSP (Pertubuhan Keselamatan Sosial), was initially introduced as a savings scheme only. It still covers the pension funds, but now employees are allowed to withdraw their savings for specific purposes like house ownership and medical purposes.
The employer pays a contribution rate of 12% of the workers monthly rate, while the employee contributes 11%.
Foreigners holding an Employment or Visit Pass, and whose monthy salary exceeds RM 2500, are exempted from the compulsory contributions. All other contribute with 11% of their monthly wage while the employer pays RM 5 per person per month.

Maternity benefits

Pregnant women are eligible to maternity benefits from any day within 30 days before the date for the childbirth. They are entitled to 60 paid days during the maternity leave. The female employee is entitled to maternetiy benefits under the condition that she has been employed for at least 90 days within the 4 month period preceding the childbirth and she must not have more than 5 children.

Shortcomings

The Malaysian Social Security systems suffers some shortcomings. All schemes named above only cover contruibutions to the age of 55. After that, the employee has to use his pension or any other funds. In addition, there is no such thing as unemployment insurance. The only payments the unemployed receives are the payments of termination as stated in the Labour Law. Lack of child and family social schemes are just as much an issue as the exclusion of self-employers from compulsory insurance.

Taken from : Malaysia Guide 

Read more »

Posted in: Social Security