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7 November, 2011
A historical achievement happened in Indonesia on 28 October when the country’s Parliament passed the Social Security Providers Bill (BPJS), thus clearing the way for long-awaited pension, medical, job-related accident, unemployment and other benefits to millions of ordinary Indonesians.
The House of Representatives gave approval to the new law a plenary session when the six-party ruling coalition, which had worked to delay the legislation, was pressured by a mass rally outside Parliament to reach terms with the Indonesian Democratic Party of Struggle (PDI-P).
25,000 Manifested 28 October at Indonesia’s Parliament
That rally, organized by the trade union/civil society coalition, Action Committee for National Social Security (KAJS), saw 25,000 Indonesians engage in a boisterous sit-in, demanding once and for all passage of the populist bill. BPJS means that the government must now implement compulsory social services mandated by the National Security System Law of 2004.
Labour leaders, however, realize that the BPJS time frame for full implementation of the different social components leaves much room for politicians to maneuver, especially with federal elections coming in 2014. BPBJS I, or the scheme for heath care for all citizens, must come into effect by January 2014, while BPJS II – social benefits related to occupational accidents, pensions, old-age benefits, and death benefit schemes – must be implemented by July 2015.
D. Patombong Sjaiful
“Yes, it was a momentous day,” said ICEM Indonesian Affiliates’ Union Chairman D. Patombong Sjaiful, the leader of FSP-KEP, the Chemical, Energy, Mines, Oil & Gas General Workers’ Union of confederation KSPI.
“But now it becomes a process to guard the intent of this new law and not let it get sidetracked by the political system.”
Said Iqbal, the KAJS General Secretary and President of the Federation of Indonesian Metal Workers’ Unions (FSPMI), agreed, stating that the process must be closely monitored in formulating and calculating sufficient costs for the different benefits.
Said Iqbal
“This marks a fundamental change in Indonesian social security,” he said. “Now we are assured there will be a minimum level of pension benefits for all, that discrimination against the poor regarding health care will end, and that all working people will have some level of social benefits.
“We must now be vigilant that government and employers adequately fund these programmes.”
Said Iqbal led the KAJS coalition that included some 69 organisations, included 40 trade unions. The coalition, including farm organizations, fishery groups, and many more, included three of the country’s main national labour centres, KSPI, KSBSI, and KSPSI. The coalition is expected now to be transformed into “BPJS Watch.”
The new BPJS law re-makes the four state-owned insurance companies (PT Askes, PT Jamsostek, PT Taspen, and PT Asabari) into two non-profit public companies under the auspices of the President’s office. PT Askes will function for the health care scheme, while PT Jamsostek will administer occupational accidents, pensions, old-age risks, and death benefits.