Love-Hate Relationship with the Social Security Agency

Indonesian Version

Christina Desy, Ady TD Achmad
 
Within less than three months, the Social Security Agency for Labor Affairs (Badan Penyelenggara Jaminan Sosial Ketenagakerjaan – “BPJS Labor”) will commence its operations and start its social security programs for workers. One of its programs is the work-related accident benefits program which includes a “return-to-work” benefit.
 
M. Hanif Dhakiri, Minister of Employment, has said that the return-to-work benefit is designed to improve worker welfare. Under the operation of this system, BPJS Labor will strive to ensure that participants can return to work after a work-related accident which may or has resulted in a permanent disability.
 
According to Mr. Dhakiri, the benefit will be provided when a worker suffers a work-related accident which requires curative treatment at a Trauma Center Hospital. If a worker becomes disabled, BPJS Labor will provide rehabilitation beneifts after obtaining consent from the respective worker and their employer.
 
In carrying the return-to-work process, the respective worker will be accompanied by a Manager of Work-Related Accidents and Illness Cases (Kasus Kecelakaan Kerja dan Penyakit Akibat Kerja – “KKPAK”). The KKPAK Manager will also monitor and supervise treatment and medication provided to the worker in order to achieve an effective and speedy recovery.
 
The KKPAK Manager will also provide post-disability training to motivate and prepare a worker before they return to work. If the worker is still unable to work, the KKPAK Manager will work to find another solution for the worker, such as re-skilling so that the worker can be employed in another unit at the same company.
 
Timboel Siregar, Advocacy Coordinator of BPJS Watch, welcomes the return-to-work benefit and is encouraging all interested parties to support the program. The benefit is a realization of Article 157 (1) of Law No. 13 of 2003 on Labor Affairs (“Labor Law”) which prohibits employers from terminating the employment of workers who become disabled due to work-related accidents or illnesses.
 
In addition to the Labor Law, the return-to-work benefit also implements Law No. 4 of 1997 on Disabled Persons which mandates private and governmental entities to provide equal employment opportunity and treatment for workers with disabilities. Under the law, all companies are supposed to employ at least one disabled worker for every 100 employees.
 
Despite its noble intent, Mr. Siregar believes that the actual enforcement of this benefit poses practical challenges as companies have a tendency not to hire disabled workers based on concerns of reduced productivity. To deal with this problem, Mr. Siregar suggests the government establish a special Work Training Center for disabled workers.
 
“One thing for sure is that the government must issue a regulation on this matter then disseminate details to the public,” added Mr. Siregar.
 
BPJS Health to be On-Hold
With the establishment of the return-to-work benefit, many are welcoming the upcoming commencement of BPJS Labor’s operations. A totally different scenario exists in relation to BPJS for Health Affairs (“BPJS Health”). Many expect that BPJS Health, which has been operational since January 2014, will only be in place until 2019.
 
Suryani Sidik Motik, Central Board Chairman of Indonesian Native Entrepreneurs Association (Himpunan Pengusaha Pribumi Indonesia – HPPI), says that the implementation of BPJS Health is ineffective because almost all companies in Indonesia already cooperate with private insurance companies to organize health benefits for their workers. Despite this being the case, companies may be subject to administrative sanctions if they fail to participate in BPJS Health.
 
“Therefore, the government must evaluate the enforcement of BPJS Health in order to prevent further negative impacts on Indonesian entrepreneurs,” said Ms. Motik, last Tuesday.
 
Supporting Ms. Motik’s statement, Iftida Yasar, Deputy Secretary General of the Indonesian Employers Association (Asosiasi Pengusaha Indonesia - Apindo), agrees that the obligation to pay premiums to BPJS Health is disadvantageous to companies which have arrangements in place with private insurance companies. Ultimately this situation burdens companies with limited budgets.
 
“Companies need time to adjust to BPJS Health, thus it is preferable for the government to hold off its enforcement until 2019,” argues Ms. Yasar.
 
In addition, Mr. Yasar also clarified that Apindo members can actually hold off the activation of their participation in BPJS Health until 30 June 2015. According to Ms. Yasar, Apindo has entered in a memorandum of understanding (MoU) with BPJS Health on this matter.
 
Responding to this matter, Rosalfia Yuliddin, Head of the Marketing Unit at the BPJS Health Main Office Branch, said that delaying the enforcement of BPJS Health will negatively affect the continuity of this institution’s operation.
 
Under the MoU with Apindo, BPJS Health has already lost around IDR 1 trillion in contributions. If this continues, it is possible that BPJS Health will not be able to provide health benefits to its participants.
 
(hot/kc)