President Jokowi Issues Presidential Instruction to Improve Workers Social Security Program

President Joko “Jokowi” Widodo has issued Presidential Instruction (Inpres) Number 2 of 2021 on Optimizing the Implementation of Workers Social Security Program.

Deputy Cabinet Secretary for Human Development and Culture Yuli Harsono said that the Presidential Instruction signed by the President on 25 March 2021 was issued in order to optimize the implementation of the Social Security Program for workers and to ensure protection for workers in the program.

“In addition, the Presidential Instruction also aims to increase the membership of the Social Security Agency for Workers (BPJS Ketenagakerjaan) which until now has only reached 54.09 percent or 49 million workers from a total potential workforce of 92 million,” Yuli said in Jakarta, Wednesday (31/03).

Yuli also said that the Presidential Instruction also aims to increase employer awareness and compliance in providing social security for workers.

In the FIRST DICTUM of the Presidential Instruction, which can be accessed at the JDIH webpage of Cabinet Secretariat, the President instructs 19 Ministers, Head of the Investment Coordinating Board (BKPM), Head of the National Agency for Disaster Management (BNPB), Attorney General, Directors of the the Social Security Agency for Workers, Governors, Regents/Mayors, and Chairperson of the National Social Security Council (DJSN) to take the necessary measures according to their respective duties, functions and authorities to optimize the implementation of the social security program.

The aforementioned Ministers are Coordinating Minister for Human Development and Culture, Coordinating Minister for Economic Affairs, Minister of Manpower, Minister of Home Affairs, Minister of Foreign Affairs, Minister of Religious Affairs, Minister of Law and Human Rights, Minister of Education and Culture, Minister of Finance, Minister of Industry, Minister of Public Works and Public Housing, Minister of Transportation, Minister of Agriculture, Minister of Marine Affairs and Fisheries, Minister of State Owned Enterprises, Minister of Communications and Informatics, Minister of Cooperatives and Small and Medium Enterprises, Minister of Social Affairs, and Minister of Villages, Development of Disadvantaged Regions, and Transmigration.

In the SECOND DICTUM of the Presidential Instruction, President Jokowi issues specific instructions to 19 Ministers, 2 Agency Heads, Attorney General, Directors of the the Social Security Agency for Workers, Regional Heads, and Chairperson of the National Social Security Council (DJSN).

“Coordinating Minister for Human Development and Culture shall coordinate, synchronize, and control the implementation of the Presidential Instruction and periodically report on the implementation every six months or at any time if deemed necessary,” the Presidential Instruction states.

The President also instructs a number of Ministers and Regional Heads to encourage employers and workers to become active social security participants.

“Minister of Manpower shall ensure that applicants for license in the field of manpower are active participants in the Workers Social Security Program,” the Presidential Instruction reads.

Minister of Home Affairs is instructed by the President to encourage Governors and Regents/Mayors so that all workers, including government employees with the status of non-civil apparatus in the region become active participants in the social security program.

The Regional Heads is also instructed to take measures so that all One Stop Integrated Services (PTSP) in their respective areas require active participation in the workers Social Security Program as one of the requirements for licensing application.

The President also instructs Chairperson of the BKPM to improve the online single submission (OSS) system to ensure the smooth registration of the workers Social Security Program in the process of applying for business license.

The President also instructs Minister of Home Affairs and the DJSN to maintain improvements and synchronization of various related regulations.

The Presidential Instructions also underscores the improvement of guidance, supervision, and compliance of employers and workers in the implementation of the social security program, and the data should be made available to increase program participation.

The President also instructs Minister of Finance to synchronize the use of tax data with the Social Security Agency for Workers membership data to improve taxpayer compliance in order to optimize the implementation of the program.

Regarding campaigns and dissemination to develop public awareness to become active participants of the Social Security program, the President specifically instructs Minister of Communication and Informatics to facilitate data communication networks on information technology systems.

The President also instructs Minister of Foreign Affairs to disseminate the program to representatives of foreign countries and international organizations in Indonesia, while the Minister of Cooperatives and Small and Medium Enterprises must disseminate the program to cooperatives and MSMEs to build awareness of being active participants in the social security program.

The President instructs Board of Directors of the Social Security Agency for Workers to improve cooperation with Ministries/Agencies or other stakeholders in the context of campaigning and program dissemination, as well as to improve cooperation with stakeholders to improve services, compliance and ease of payment system.

Regarding the funding, the President instructs Minister of Home Affairs to encourage regional heads to allocate budget in order to optimize the implementation of the Social Security Program. Meanwhile, regional heads are instructed to formulate and stipulate regulations and allocate budgets to support the implementation of the program in their regions.

“The funding to improve the implementation of the Workers Social Security Program is sourced from the State Budget, Regional Budget, and other sources that are legal and non-binding in accordance with the provisions of laws and regulations,” the THIRD DICTUM of the Instructions states. The Presidential Instruction applies as of the date of its issuance. (DND/UN) (RI/LW)