Sanctions have been stipulated for companies that fail to register their employees with the Social Security Agency for Health (“BPJS Health”). However, these sanctions, which take the form of written warnings, penalties and/or refusal of certain public services, will not prove effective, many believe, without more concerted action being taken by the government, specifically the country's regional governments.
“BPJS health has so far sent over 2000 written warnings to companies that have failed to comply with the BPJS provisions,” explained Purnawarman Basundoro, Directorfor LegalandCommunicationAffairsandInter-institutionalRelations for BPJS Health, to hukumonline in Malang, East Java on 27 August 2015
Basundoro added that in order to make sanctions more effective, especially in the regions, BPJS Health and the National Social Security Council (“DJSN”) were in coordination with the stakeholders in a bid to deal with the one of the most common violations faced, namely a reluctance shown by various companies to register all of their employees with the BPJS program and to then make the required monthly premium payments.
Written warnings have been sent out to companies that have yet to register their families and their employees with BPJS Health, while those which have registered but which neglect to pay the monthly premiums have been visited and assessed, with a view to ensuring that the companies in question pay their outstanding premiums.
Among the regions that have already been visited are Bandung, Balikpapan, Palembang and Serang. However, regional technical regulations are required for BPJS Health to run effectively and thus the issuance of a new regional regulation may be in order.
As for the refusal of certain public services as a possible sanction, both PBJS and DJSN are currently still coordinating with stakeholders such as the regional government. This sanction can take the form of a revocation of building permits (“IMB”) as well as the revocation of driver’s licenses (“SIM”).
“If the offending companies wish to obtain a building permit and/or driver's license, then they should first register with BPJS Health,” stated Mr. Basundoro.
Mr. Basundoro has said that he is also prepared to follow up on cases of possible fraud within companies, which may have made deductions from employees’ salaries in order to pay monthly BPJS Health premiums, without ultimately paying said premiums. To date, however, no such cases have been brought to Mr. Basundoro's attention.
DJSN spokesperson Subianto told us that, up to the present moment, the body has yet to compile all of the relevant data relating to violations committed by various business entities regarding their obligations to BPJS Health.
In Subianto's opinion, one such violation currently disadvantaging workers concerns the MoU that exists between BPJS Health and the IndonesianEmployers Association (“Apindo”), which is delaying BPJS Health membership for business entities who are Apindo members.
According to Timboel Siregar, Advocacy CoordinatorforBPJS Watch, the application of sanctions, as set out in Government Regulation Number 86 of 2013, cannot simply be handed over to the country's regional governments.
In Siregar's view, enforcement of sanctions should be supervised by central government, specifically by the Ministry of Home Affairs and the Ministry of Health, in order that sanctions, such as the refusal of certain public services by regional governments, be implemented effectively.
Mr. Siregar has also stated that BPJS should be authorized to assign supervisory officials who will coordinate and report back to BPJS regarding violations committed in the field. BPJS should then coordinate with central government, who should act in a supervisory role as regards regional governments, in order to optimize the application of sanctions for violators.
“If there is no central supervision, then we fear that regional governments will prioritize investment over the upholding of the law, as it relates to BPJS,” concluded Mr. Siregar.
Sanctions have been stipulated for companies that fail to register their employees with the Social Security Agency for Health (“BPJS Health”). However, these sanctions, which take the form of written warnings, penalties and/or refusal of certain public services, will not prove effective, many believe, without more concerted action being taken by the government, specifically the country's regional governments.
“BPJS health has so far sent over 2000 written warnings to companies that have failed to comply with the BPJS provisions,” explained Purnawarman Basundoro, Directorfor LegalandCommunicationAffairsandInter-institutionalRelations for BPJS Health, to hukumonline in Malang, East Java on 27 August 2015
Basundoro added that in order to make sanctions more effective, especially in the regions, BPJS Health and the National Social Security Council (“DJSN”) were in coordination with the stakeholders in a bid to deal with the one of the most common violations faced, namely a reluctance shown by various companies to register all of their employees with the BPJS program and to then make the required monthly premium payments.
Written warnings have been sent out to companies that have yet to register their families and their employees with BPJS Health, while those which have registered but which neglect to pay the monthly premiums have been visited and assessed, with a view to ensuring that the companies in question pay their outstanding premiums.
Among the regions that have already been visited are Bandung, Balikpapan, Palembang and Serang. However, regional technical regulations are required for BPJS Health to run effectively and thus the issuance of a new regional regulation may be in order.
As for the refusal of certain public services as a possible sanction, both PBJS and DJSN are currently still coordinating with stakeholders such as the regional government. This sanction can take the form of a revocation of building permits (“IMB”) as well as the revocation of driver’s licenses (“SIM”).
“If the offending companies wish to obtain a building permit and/or driver's license, then they should first register with BPJS Health,” stated Mr. Basundoro.
Mr. Basundoro has said that he is also prepared to follow up on cases of possible fraud within companies, which may have made deductions from employees’ salaries in order to pay monthly BPJS Health premiums, without ultimately paying said premiums. To date, however, no such cases have been brought to Mr. Basundoro's attention.
DJSN spokesperson Subianto told us that, up to the present moment, the body has yet to compile all of the relevant data relating to violations committed by various business entities regarding their obligations to BPJS Health.
In Subianto's opinion, one such violation currently disadvantaging workers concerns the MoU that exists between BPJS Health and the IndonesianEmployers Association (“Apindo”), which is delaying BPJS Health membership for business entities who are Apindo members.
According to Timboel Siregar, Advocacy CoordinatorforBPJS Watch, the application of sanctions, as set out in Government Regulation Number 86 of 2013, cannot simply be handed over to the country's regional governments.
In Siregar's view, enforcement of sanctions should be supervised by central government, specifically by the Ministry of Home Affairs and the Ministry of Health, in order that sanctions, such as the refusal of certain public services by regional governments, be implemented effectively.
Mr. Siregar has also stated that BPJS should be authorized to assign supervisory officials who will coordinate and report back to BPJS regarding violations committed in the field. BPJS should then coordinate with central government, who should act in a supervisory role as regards regional governments, in order to optimize the application of sanctions for violators.
“If there is no central supervision, then we fear that regional governments will prioritize investment over the upholding of the law, as it relates to BPJS,” concluded Mr. Siregar.