Ministry of National Development Plan/

National Development Planning Agency (BAPPENAS)

Recent Progress on Social Protection in Indonesia

Vivi Yulaswati
Director for Poverty Reduction and Social Welfare
Tokyo, May 18th 2018
Disclaimer: The views expressed in this document are the views of the author(s) and do not necessarily reflect the views or policies
of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee
the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice,
opinion, or view presented, nor does it make any representation concerning the same.
 OUTLINE

1 Regulation Framework

2 Recent Development

3 Policy Design
 Social Protection for All

Preamble to the Constitution 1945 Constitution 1945

The government oblige to protect all the All poor and vulnerable are protected by the
citizens by improving their welfare and provide Government by providing them social
education protection.

Law 17/ 2007 on Long Term Development Planning (RPJP)

1. Social Security Program for all citizens.
2. Empower the poor and vulnerable towards dignified community.
3. Integration of social security and social assistance, and cover the informal sectors.
4. Cooperation (gotong royong) become main principal of Social Security

Strategy Towards Comprehesive Social Protection

Strengthening Institution of the Social Restructuring of the Social Assistance

Security System

Development of integrated social

Increasing inclusivity of Disable Coverage protection
 Development of Social Protection in Indonesia
Pension Program for Government Officials, Police and Armies(TASPEN)

Formal Workers Insurance (JAMSOSTEK) National Social Security on

Labor (SJSN Naker)
Health Insurance for Government Officials, Police and Armies, and their families (ASKES National Social Security on Health (JKN)
Social 1. Development to Health insurance for the poor (Askeskin)
Safety Subsidized-
Net: 2. Un-Integrated National Health insurance (Central and Premium JKN
Health Local Government)
Support

BEFORE POLITICAL REFORM 1997 1997-1998 AFTER FINANCIAL CRISIS 1998 - 2014 2015-NEW CABINET

Social Safety Net: Poor Student Scholarhsips:Cluster I Social Scholarships: KIP

Scholarships Assistance
Social Safety Net: Food Non-Cash Transfers
Food Assistance for the Poor (RASKIN)
Assistance (OPK)

Conditional Cash Transfers (Family Hope Program)

1. Productive Economy Cluster 2 Community

Sustanaible Livelihood
2. Local Government Development/ Based Empowerment
Approach
Empowerment Program (PNPM)

Cluster 3 Credit for the Credit for Micro

Micro Enterprise Enterprise (KUR)
 Unseen Middle Income Class

By the Law, cash transfers or Higher percentage of middle class Financially

subsidies are directed to the informal workers are “unseen” capable to
poorest 40% and uncovered by insurance enroll at Middle group, who work in
and/or social assistance. National informal sector, is
Social relatively “unseen” without
Cash
transfer
Security affirmative action.
for and Private
elderly & Scheme Limited enrollment is due
disabled to:
Private pension and health • Financial constraint
Other non- insurance, and other investment
conditional • Costs of premium and
cash transfers Pension and insurance for civil servants enrollment
(before 2015) and military
• Lack of insurance literacy
CCT, Scholarship National Social
Able to enroll • Administration problem
Security on
at National
Subsidy for National Health Insurance Limited scheme for Health and
Social Security
(plus local gov) informal sector Pension

Poorest 40% Middle 40% Top 20%

Sources: Acharya et al., 2012; Gargand Karan, 2009; Peters et al., 2002; Pradhan and PrescoL, 2002,
Thornton et al.(2010), Hartanto, 2014, J-PAL (2015). 35
 Support for Social Protection: Empty in the Middle
Poverty Line
Poverty Rate 10,12% Formal Workers
Poor People 26,58 Mio 21.4 Mio
Informal Workers
27,4 Mio
Number of Household
26.74 Mio
Workers with <35 Hr
Number of Family 17.1 Mio
CCT (PKH) 15 % 28.78 Mio
Workers with >35 Hr
Other Social Assistance Number of Population
(Rastra,KPS/KKS, BPNT) 25 % 96.83 Mio **) 10.2 Mio
Scholarships (KIP) 25 %

Subsidy for National Health Insurance (plus local gov) >40 %

Poorest 40% Middle 40% Top 20%

Note:
*) Berdasarkan Kepmensos Nomor 163/HUK/2017 tentang Penetapan Data Terpadu Program Penanganan Fakir Miskin Tahun 2017
**) Mencakup 37% dari keseluruhan total penduduk Indonesia tahun 2017
36
 Mandatory Memberships at the National Social Security

Effective year of
implementation
2004 2010 2013 2015

Presidential Decree 12/ Government Regulation

Law 40/ 2004 Law 24/ 2011
2013 (No. 44. 45. 46/ 2015)

Law on Institution to
Law on Social Security
Implement Social Security
Health Insurance
program started to
✓ Health Insurance ✓ BPJS Health
operate

✓ Pension Program
✓ Old Age Savings
✓ BPJS Labor
✓ Accident Insurance
✓ Death Insurance

7
 37.43
5.14
13.52

1
0.11
0.40
43.39
34.60
7.08
13.37

2
0.21
0.83
43.90

Sumber: Susenas Maret 2017

32.58
8.04

BPJS PBI
13.69

3
0.20
1.43
44.07
30.67
9.06
13.13

BPJS NonPBI
4
0.32
2.15
44.68
28.99
11.03

Jamkesda
12.45
5 0.35
3.16
44.02
26.88
13.90
12.56
6

0.45
Asuransi Swasta

3.83
42.39
25.36
16.42
12.06
7

0.56
5.04
40.56
Perusahaan/kantor

22.12
20.39
11.99
Increasing, the middle group yet not entirely covered

0.78
5.85
38.87
Tidak Punya

18.72
27.86
10.36
9
Coverage of National Social Insurance by Economic Status

1.41
8.33
33.33
14.28
36.41
6.90
10

6.86
11.61
23.94
 Memberships of National Social Insurance for Labor 2014-2017
(Million Workers)

26.23
22.63
19.28
17.98
16.07
14.57
14.04
13.01

8.46
6.68
4.95
4.24
1.71
1.38
0.73

0.29

Formal Workers Informal Workers Construction Workers Total

2014 2015 2016 2017

Sumber: BPJS Ketenagakerjaan
9
 Memberships of National Health Insurance 2014-2017 (Million)

188.0
171.9
156.8
133.4
117
92.4
91.1
87.8
86.4

86.4

44.9
41.0
37.9

30.4
24.4
24.3
21.3

20.3
19.9

15.4
13.9

11.2
8.8
5.5

3.7
PBI PPU PBPU & BP Jamkesda Total

Jan-14 Des-14 Des-15 Des-16 Des-17

Source: BPJS Kesehatan,
10
 Number of Members of National Social Insurance for Labor
by Age in 2017
800,000

700,000

600,000

500,000

400,000

Accident and Death Insurance

300,000
Pension Program

200,000

100,000

-
15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79

Sources: BPJS Ketenagakerjaan, Bappenas, proyeksi BPS 11

 Percentage of Coverage of National Health Insurance
by Age in 2017
350

300

250

200

150

100

50

0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89

Sumber: BPJS Kesehatan, Proyeksi Penduduk BPS 12

 Isu Ageing Society: the Challenge of Coverage to Achieve SDGs Target

2015 2045 Number and Percentage of Poor Elderly (60+), 2015

3,100 14.5

Thousand People
Population 255,1 318,9
3,000
14.09 14.0
(million) 2,900
2,800 13.5

Population in 2,700
53,1% 67,1% 13.05 13.0
Urban 2,600
2,500 12.56 12.5

Life Expectancy 2,400

70,8 75,5 12.0
(year) 2,300
2,532 3,022 2,924
2,200 11.5
2014 2015 2016
Number of 21 71,3 Jumlah Miskin Tingkat Kemiskinan (60+)
Elderly (million)

• In the nearest future, population will be ageing. Indonesia will reach 10% of 60+ elderly in 2020s
• Higher percentage of poor elderly compared to national poverty rates
• Lower coverage of pension program ownerships Sourdce: BPS, Sensus dan Supas
 Informal sector becomes one of priority to accelerate coverage of NATIONAL
SOCIAL SECURITY SYSTEM (SJSN)

coverage advocacy innovation

Coverage expansion for Develop innovative methods for
Socialization, advocacy
vulnerable and informal sector registration, premium collection
workers and education and benefits payment/claims

Develop an integrated
Enforcement of Integration both Social Security
monitoring and evaluation
system
compliance System and Social Assistance

monev compliance integration

Source: Government Work Plan 2017

TERIMA KASIH