BPJS Ketenagakerjaan president director Agus Susanto, right, and Deputy Attorney General Bambang Setyo Wahyudi during the signing of a memorandum of understanding in Jakarta on Wednesday (27/04). (ID Photo/David Gita Roza)

BPJS Ketenagakerjaan Gets AGO's Backing to Enforce Social Security Program


APRIL 29, 2016

Jakarta. Indonesia's social security administration body for employment, BPJS Ketenagakerjaan, has secured the backing of the Attorney General's Office in a move to preempt any legal issues that may arise as it tries to coerce more companies to join the compulsory social security program.

BPJS Ketenagakerjaan president director Agus Susanto and Bambang Setyo Wahyudi, the deputy attorney general for civil and state administration, signed a memorandum of understanding in Jakarta on Wednesday (27/04).

"We have created this agreement to enforce the rules, because there are still companies that violate the regulations, even regarding the terms related to joining the BPJS Ketenagakerjaan program," Agus said in a statement.

Under a 2011 law that governs the social security agency, all companies operating in Indonesia are required to enroll their employees in the social security program. Failure to do so may result in fines, or the denial of government services and permits.

In terms of the agreement, the AGO will provide legal assistance to the social security administration body.

Indonesia has a workforce of 120 million, but only 19.3 million are protected under the BPJS Ketenagakerjaan program.

"There are still so many workers who are not insured, which is why the support from various sectors, including the attorney general, is very important to us," Agus said.

BPJS Ketenagakerjaan now provides cover for occupational accidents, life insurance, retirement savings and pensions for retired workers.