Indonesia's social security administration body for employment, known as BPJS Ketenagakerjaan, recorded a total surplus of Rp 19.64 trillion ($1.4 billion) last year. (Antara Photo/Kornelis Kaha)

BPJS Ketenagakerjaan Books Rp 19.6t Surplus in 2015

BY :RATRI M. SINIWI

MAY 23, 2016

Jakarta. Indonesia's social security administration body for employment, known as BPJS Ketenagakerjaan, recorded a total surplus of Rp 19.64 trillion ($1.4 billion) last year.

With more than 290,000 corporate clients and 19 million active individual participants in its social security program, BPJS Ketenagakerjaan collected a total of Rp 36.2 trillion in premiums last year.

Total claims paid out to registered members, consisting of both formal and informal workers, amounted to Rp 17.9 trillion.

BPJS Ketenagakerjaan said the benefits paid to participants were positively received, with 90 percent of clients stating that they were satisfied with the services. The social security body attributed its positive financial position to its efficient asset management.

BPJS manages Rp 214.52 trillion in tangible assets and social security funds, plus returns on investment.

"All parties involved played an important role in last year's positive financial performance, and we will continue to focus on putting our customers first," BPJS Ketenagakerjaan president director Agus Susanto said in a statement. "The surplus is the difference between revenue and operating expenses in the management of social security schemes by BPJS Ketenagakerjaan."

The social security body posted an income of Rp 19.02 trillion from the managing of its funds, and a surplus of Rp 624.6 billion from its operational management.

The government has made it mandatory for companies to register their employees, including expatriate workers, with the employee social security program, regardless of other programs and policies in place in their home countries.

BPJS Ketenagakerjaan also exerted a greater power starting from July last year, with its transformation from a state-controlled company into a government agency, allowing it to monitor companies operating in Indonesia to ensure that employees are enrolled in the compulsory social security scheme.

A surplus in its operations means it will not have liquidity problems in managing its social security scheme for the Indonesian public.

The body, previously known as Jamsostek, or the state pension fund, offers three of the four services its predecessor performed previously. This involves insurance against occupational accidents, a retirement savings scheme and life insurance.

SHARE