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

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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 .

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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 .

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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

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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.

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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

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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

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