BPJS of Employment is Indonesia’s worker protection system, ensuring social security for employees, both local and foreign. This government-mandated program provides financial safety in cases of workplace accidents, layoffs, and retirement. With recent regulations affecting benefit withdrawals, understanding BPJS of Employment is essential for workers navigating financial stability.
What is BPJS of Employment and Who Must Enroll?
BPJS of Employment, or BPJS Ketenagakerjaan, is a compulsory social security program designed to protect workers. It applies to:
- Local employees working in formal sectors.
- Foreign workers with contracts exceeding six months.
Participants receive coverage, including workplace accident compensation, old-age benefits, and pensions. Employers are responsible for registering their employees and ensuring contributions are made.
BPJS of Employment Benefits: What Workers Need to Know
The program provides various benefits, including:
- Work Accident Insurance (JKK): Covers medical costs and compensation for work-related injuries.
- Old Age Benefits (JHT): Savings accessible upon retirement or meeting withdrawal conditions.
- Pension Program (JP): Monthly pension benefits for retirees.
- Job Loss Benefits (JKP): Financial aid for unemployed workers.
These benefits help workers manage financial uncertainty and ensure long-term stability, especially during unexpected circumstances.
How Foreign Workers Benefit from BPJS of Employment
Foreign workers who meet eligibility criteria are entitled to BPJS of Employment, contributing just like local employees. They receive protection through various programs, including old-age benefits and work accident insurance.
A recent case highlights how BPJS Ketenagakerjaan supports foreign workers. Glen Malcolm Conning, a New Zealand pilot working for PT Intan Angkasa Air Service, tragically lost his life in a shooting incident while on duty in Papua on August 5, 2024. At the time, he was transporting medical personnel and supplies for the local health department. BPJS Ketenagakerjaan quickly deployed a Rapid Response Service team to verify his participation in the program. Since he had been enrolled since April 2024, his family was entitled to compensation.
BPJS Ketenagakerjaan’s Director of Services, Roswita Nilakurnia, officially handed over IDR 939.3 million in benefits to Conning’s family, represented by PT Intan Angkasa Air Service’s Director of Operations. “We hope that our actions provide recognition and support to the family and the company for the late Conning’s contributions.” She stated, as reported by Kontan.
This case underscores the importance of social security coverage for all workers, regardless of nationality. It also serves as a reminder for employers to ensure their foreign employees are registered in the program, ensuring financial protection in unforeseen circumstances.
Claiming BPJS Benefits After Layoffs or Leaving Indonesia Permanently
For workers facing layoffs or foreign employees permanently leaving Indonesia, BPJS provides financial assistance. The Ministry of Manpower stated: “JHT withdrawals for foreign participants who leave Indonesia permanently before the age of 56 can still be made under the following conditions:”
To claim JHT or job loss benefits, workers must follow these steps:
- Prepare required documents:
- BPJS Ketenagakerjaan membership card as proof of enrollment.
- A signed statement confirming the individual will no longer work in Indonesia.
- A valid passport for identification purposes.
- Submit documents to a BPJS office or online portal.
- Wait for claim processing and approval.
Starting May 4, 2022, the government reinforced that JHT is primarily a retirement fund. The Ministry of Manpower explained: “From May 4, 2022, Ministerial Regulation No. 2 of 2022 takes effect, returning JHT to its original purpose as a guarantee for participants to receive cash when entering retirement, suffering total permanent disability, or passing away.”
Why BPJS of Employment Matters in Indonesia’s Workforce
The BPJS of Employment plays a crucial role in economic stability. By ensuring workers receive financial support during crises, the program prevents economic downturns caused by widespread layoffs or work-related disabilities. Employees should stay informed about their BPJS rights to maximize the benefits available.
With evolving regulations, understanding the BPJS of Employment is more important than ever. Workers—both local and foreign—must ensure compliance to secure their future financial well-being.
Simplify Your BPJS Compliance with Expert Assistance
Enrolling in BPJS Employment is essential for foreign workers in Indonesia, ensuring workplace protection and job security. It also fosters positive employer relations and a more inclusive work environment.
Seven Stones Indonesia can help foreign businesses navigate BPJS compliance, from registration to ongoing management. Contact us via WhatsApp at +62 877-7711-7701 or email [email protected] for expert assistance.
Source: nasional.kontan.co.id, economy.okezone.com, fajar.co.id
Image: Getty Images/Muhammad Labib Adilah
