OVERVIEW

With the introduction of Law No. 40 of 2004 on The National Social Security System, the Indonesian Government has put in motion the initial steps for a universal social security net for the Indonesian population. This plan is considered one of boldest attempts by any nation to implement a comprehensive social security regime, and is also mandated under the 1945 Constitution as well as essential to ensure the welfare of Indonesia’s 250 million citizens, the majority of which cannot afford health services.

This new social security system is intended to not only cover health services, but also provide for workers’ welfare during, after, and in between employment. This ambitious program will be carried out by a newly established institution called the “BPJS” (Badan Penyelenggara Jaminan Sosial – “BPJS”), the establishment of which is required under Law No. 24 of 2011 on Social Security Agency (“BPJS Law”).