based on the new regulation from the government of Indonesia for workers security social

1. Social Security Body (BPJS)
By:
Muhammad Dhafi Iskandar

2. Social Security for Pension is intended to maintain the quality of a decent life for participants
and/or their heirs by providing income after the participant’s pension, total permanent disability, or
death.
Social Security Body (BPJS) Employment is a public legal entity established by Law No. 24 of 2011 on
the Social Security Body. Protection to workers in the social security program covers Accident
Insurance (JKK), Old Age Insurance (JHT) and Life Insurance (JK).
The Full operation of BPJS employment as of 1st July 2015, the provision of the benefits by Law No. 3
of 1992 is no longer valid and replaced by law No. 40 of 2004 and Law No. 24 of 2011 with the
programs of JKK-JK, JHT and JP. In its operation after 1st of Jult 2015, there are amendments of
benefits such as:
 Old Age Insurance (JHT)
 Life Insurance (JK)
 Program of Accident Insurance (JKK)
a) The benefits granted in the form of services in accordance medical indication;
b) 2 years of claim expired period;
c) Services by shaman (dukun)/alternative medicine is not covered;
d) Return to work service;
e) Scholarships for children of participants who experienced total disability or death by
the amount of Rp. 12.000.000,- and is only valid for 1 child.
 Pension Guarantees Program
a) Obligatory and is given in the form of defined benefits if they meet the minimum
age requirement of 15 years of contributions and paid periodically
b) If the contribution period is less than 15 years old then it will be paid at once
c) Type of pension benefits are consist of:
 Old-age pension benefit
 Disability pension benefit
 Widow or widower pension benefit
 Retirement’s childrens benefit
 Retirement’s parents benefit
d) The amount of contribution is 3%, which is shared with the employer by 2% and the
participant by 1%

3. e) The highest limit of wage as the basis for calculating fee is Rp. 7,000,000, -
f) The pension benefit formulation is 1% multiplied by the period of contributions
divided by 12 months multiplied by the average annual wage.
Status of Legal Obligations
Based on Government Regulation No. 45 year 2015 Article 4 paragraph (1), the employer, other than
the state administrators is obligated to register all of their workers as participants based on the
provisions of legislation.
Administrative sanctions due to not registering contained in article 34 is in the form of written
warning and not getting certain public services whose implementation in accordance with the
provisions of the legislation.
Regarding the Foreign Workers (TKA) in Indonesia, it is stated in Article 1 paragraph 4 of BPJS Law
that:
"Participants are all people, including foreigners who work for a minimum of 6 (six) months in
Indonesia, which has been paying dues."
This provision is reaffirmed in Article 14 of BPJS Law which states that everyone, including foreigners
who work for a minimum of 6 (six) months in Indonesia, shall be participants of Social Security
program. This means that, BPJS Employment is a mandatory for foreign workers. Thus, all the
provisions on procedures for the registration and other rules about BPJS Employment shall also
apply to foreign workers working in Indonesia.

4. Pension Guarantees Program Implementation
Membership
Participants are consist of:
a. State Officials; and
b. Non-state Officials.
Membership in the Pension Guarantees Program is applied since the workers registered and the
first contribution fee has been paid by the Employer of non-state officials to the BPJS.
BPJS provide proof of payment of the first contribution fee. This payment receipt is recognize as
proof of the participant registration and the commencement of Pension Guarantees Protection.
Pension Guarantees membership ends when the Participant:
a. Passed away; or
b. Reaching pension age and receive the accumulation results of their payments at once.
Registration
Employer of non-state officials shall register their new workers at the
latest of 30 (thirty) days from the date that the worker starts working. In
the event that the Employer of non-state officials manifestly negligent
not to register their workers, the workers have the right to register
themselves in the BPJS Employment Pension Guarantees program in
accordance with the regulation.
Registration by workers is done by filling the registration form and attach:
a. Employment agreement, a letter of appointment, or other evidence that shows their status
as a worker;
b. Identity card (KITAS/KTP); and
c. Family card (KK).

5. BPJS verify to the Employer of non-state officials at the latest of seven (7) working days from the
date of registration. In case of the verification proves that employer of non-state officials manifestly
negligent to not register their Workers, Employers, are subject to sanctions in accordance with the
provisions of the legislation.
In addition to the above penalties, the non-state officials Employer is obligate to collect and deposit
the contribution fee of its Workers to the BPJS.
In the case of workers that are not yet registered in BPJS, Employer of non-state officials must take
responsibility to their Workers by providing Pension Benefits in accordance with the regulation.
BPJS shall publish the membership numbers for Workers in the latest of 1 (one) working day after
the first contribution fee is paid in full. In the case of the BPJS did not publish the number of
membership, then the payment receipt could be used as proof of membership. BPJS provide
membership card in the latest of seven (7) working days from the date of the membership number
was published. Membership number is the single number for all social security programs of labor.
BPJS issue membership certificates for Employer of non-state officials who have registered their
workers within the latest period of seven (7) working days from the date of receipt of the complete
application form as well as the first contribution is paid to BPJS.
Modification of Membership Data
In the case of modification of participants data and families, Changes shall be submited to the
Employer and they must submit the report of modification to the BPJS at the latest of seven (7)
working days after the data is received from the participants.
In the case of participants is temporary not working, they must report this information to the BPJS.
BPJS required to provide confirmation of the changes to membership data to the Employer and
participants no later than 7 (seven) working days after the statement of changes in membership data
is received. At least, the confirmation mst be made through the website of BPJS.
Participants who change jobs must notify the Employer in the new workplace by showing their BPJS
membership card. Employer in new workplace shall continue the coverage of workers with reported

6. membership card and pay contribution fee to BPJS since the workers started to move in their new
workplace.
In case of modification of salary, number of workers, office address, and other changes related to
the Pension Guarantees, Employer is obligated to submit the changes to the BPJS at the latest of 7
(seven) days since the changes applied.
Beneficiaries of Pension Program
Beneficiaries of Pension Program are consist of:
a. Participants;
b. 1 (one) wife or husband legally under the provisions of the legislation;
c. Maximum two (2) Children; or
d. 1 (one) Parents.
Children of Participants that was born to a maximum of 300 (three hundred) days after the
dissolution of the marriage who has been registered in the government or after the Participant
passed away can be registered as recipients of Retirement Benefits.
In case of modification of the composition for the Pension Benefit recipients, participants must
submit changes to the recipient list of Pension Benefits at the latest of 30 (thirty) days from the
applied date of the changes of the composition for the Pension Benefit recipients to the Employer of
non-state officials.
Modification of the Pension Benefits cannot be made after the participants:
a. Received the first Pension Benefits; or
b. Passed away except for their Children.
Employer are required to report changes in the composition of the recipient for Pension Benefits to
BPJS.
In case of dispute for the appointment of heirs entitled to receive Pension Benefits, this could be
settled amicably between the heirs. In the event that consensus is not achieved, the appointment of
the heirs should be resolved through the court.

7. Pension age for the first implementation is set to 56 (fifty six) years old. From January 1st
, 2019, the
Retirement Age will be 57 (fifty seven) years old. Pension age increases subsequent of one (1) year
for every 3 (three) years until they reach the pension age of 65 (sixty-five) years. The participant that
has entered Pension Age but is still employed, could choose to receive the pension benefits upon
reaching the Pension age or when stop working with the provisions of 3 (three) years after the
Pension Age.
Pension Benefits
Pension benefits include:
a. old-age pension;
b. disability pension;
c. Widow or widower pension;
d. Child pension; or
e. Parent Pension.
Pension benefits are set as follows:
a. For the first year, Pension Benefits are calculated based on the formulation; and
b. For the next year (every 1 year), Pension Benefits are calculated for the previous year
multiplied by the indexation factor.
Pension benefit calculation is 1% (one percent) multiplied by contribution period divided by 12
(twelve) months multiplied by the average weighted annual wage during the period of contribution
divided by 12 (twelve).
Weighted annual wage is a wage that the value has been adjusted based on the general rate of
inflation. Indexation factor is set at 1 (one) plus the general rate of inflation from the previous year.
The general rate of inflation is the annual inflation rate set by the the government institution in the
field of statistics.
For the first time, the minimum Pension Benefit is set at Rp 300.000,- (three hundred thousand
Rupiah) for each month. For the first time, the the maximum Pension Benefit is set at Rp 3.600.000,-
(three million six hundred thousand Rupiah) for each month. The maximum and minimum amount

8. of Pension Benefits are adjusted each year based on the general rate of inflation from the previous
year.
Old Age Pension Benefits
Old Age Pension Benefits is receive by participants who have reached Pension Age and has had
contribution period of minimum 15 (fifteen) years which is equivalent to 180 (one hundred eighty)
months. The amount of Old Age Pension Benefits are calculated by a formula. Rights for the Old Age
Pension Benefits are calculated from the 1st of the following month after the participant reaches
Pension Age. Rights for the Old Age Pension Benefits ended when the participant passed away.
Disability Pension Benefits
Disability Pension benefits are received by participants who experienced Total Permanent Disability
before reaching Pension Age. The amount of Disability Pension Benefits are calculated by a formula.
In the case of participant experience the Total Permanent Disability and the contribution period is
less than 15 (fifteen) years, the contribution period used in calculating the Disability Pension Benefits
is 15 (fifteen) years, provided that:
a. Participants regularly pay the contribution fee to the frequency of at least 80% (eighty
percent); and
b. Events leading to Total Permanent Disability occur after participants enrolled in the Pension
Guarantee for at least 1 (one) month.
Rights for Disability Pension benefits are received, as calculated from date 1 of the following month
after participant experience Total Permanent Disability. Confirmation of Total Permanent Disability
is performed by the advisory Doctor, the treating Doctor, and / or the examining Docter. In the event
of disagreement over the results of the confirmation of Total Permanent Disability, settlement will
be done through the mechanisms established by the Minister. The rights for Disability Pension
Benefits will be terminated when the Participant passed away or no longer meet the condition of
Total Permanent Disability.

9. Widow or Widower Pension Benefits
Pension benefits are received by the widow or widower of wife or husband of the passed away
participants.
The amount of Pension benefits of Widow or Widower are calculated as:
a. 50% (fifty percent) of the Pension Benefits formula, for participants who died before
receiving Pension Benefits; or
b. 50% (fifty percent) of the Old Age or disability Pension Benefits, for participants who died
after receiving Pension Benefits.
In the case participant passed away before reaching the pension age and the contribution period is
less than 15 (fifteen) years, the contribution period used in calculating the Pension Benefits of
widow or widower is 15 (fifteen) years, provided that:
a. Has been a participant for at least 1 (one) year; and
b. Participants regularly pay contribution fee to the frequency of at least 80% (eighty percent).
Rights for the Widow or Widower Pension Benefits are calculated from date 1 of the following
month when the Participant passed away. The Rights will be ended when the widow or widower
passed away or remarries.
Child Pension Benefits
Child Pension benefits received by the Children in terms of:
a. Participants passed away and did not have a wife or husband; or
b. Widow or widower of a Participant passed away or remarries.
The amount of Child Pension benefits are calculated as:
a. 50% (fifty percent) of the Pension Benefits formula, for participants who passed away before
receiving the Pension benefits and do not have Widow or widower;
b. 50% (fifty percent) of the Old Age or Disability Pension Benefits, for participants who passed
away after receiving Pension benefits and has no widow or widower; or
c. 50% (fifty percent) of the widow or widower Pension benefits, for a widow or widower who
passed away or remarries.

10. In the case of the Participant dies before reaching the age of Pension and the contribution period is
less than 15 (fifteen) years, the contribution period used in calculating the Child Pension benefits is
15 (fifteen) years, provided that:
a. Has been a participant for at least 1 (one) year; and
b. Participants regularly pay contribution fee to the frequency of at least 80% (eighty percent).
Children's rights to the Pension benefits are calculated from the date 1 of the following month after:
a. Participants passed away;
b. Widow or widower passed away; or
c. Widow or widower remarries.
Right for the Child Pension benefits will be terminated when the Child reaches the age of 23 (twenty
three) years, working, or married.
Parent Pension Benefits
Parent Pension benefits are received when the Participant passed away and does not have a wife,
husband, or children.
The amount of Parent Pension Benefits are calculated as:
a. 20% (twenty percent) of the Pension Benefits formula, for participants who passed away
before receiving Pension Benefits; or
b. 20% (twenty percent) of the Old Age or Disability Pension Benefits, for participants who
passed away after receiving Pension Benefits.
In the case of Participant passed away before reaching the age of Pension and the contribution
period is less than 15 (fifteen) years, the contribution period used in calculating the Parent Pension
Benefits is 15 (fifteen) years, provided that:
a. Has been a participant for at least 1 (one) year; and
b. Participants regularly pay contribution fee to the frequency of at least 80% (eighty percent).
Rights to the Parent Pension Benefits are counted from the date of 1 of the following month after
the Participant passed away. Rights to the Parent Pension Benefits will end upon the parent’s death.

11. Rights to the Participant that Achieve Pension Age Before fulfilling the Contribution Period
of 15 (Fifteen) Years
In the case of the Participant reaches Pension Age before fulfilling the contribution period of 15
(fifteen) years, participants are entitled to the entire accumulated of contribution fee plus the
investment results. The entire accumulated contribution plus the investment results are paid to
participants on the date of 1 of the following month after the participant reaches Pension Age and
the document has been fully received by BPJS. Results of development are calculated each month
based on the actual value.
Payment of Pension Benefits
For the first time,Pensiont Benefit is paid to the following provisions:
a. The soonest since the rights to the Pension Benefits began to be taken into account and the
supporting documents are fully received by BPJS; and
b. At the latest of 15 (fifteen) days from the arising rights of the Pension Benefits and the
supporting documents are fully received by BPJS.
The next Pension benefit payments is at the latest of 1 month. Pension benefit payments will be
stopped after the rights to the Pension Benefit ends. Pension Beneficiaries are required to confirm
the data once in three (3) months to BPJS. In the case of Pension Beneficiaries is not yet confirm the
data, BPJS will suspend the payment for the Pension Benefits. The payment could be ccontinued
after the Pension Benefit Recipients report and confirm the data. In the case of Pension Beneficiaries
did not confirm until ten (10) years, BPJS will stop the payments of Pension Benefit.
Amount of Contribution Fee
Contribution fee for Pension Guarantees must be paid every month. The contribution fee is 3%
(three percent) of wages per month and shall be borne jointly by the Employer of non-state officials
and the participants with the following provisions:
a. a. 2% (two percent) of the wages incurred by the Employer of non-state officials; and
b. b. 1% (one percent) of the wages incurred by participants.

12. The amount of compensation fee is evaluate for a minimum of three (3) years with consideration of
national economic conditions and calculation of the adequacy of actuarial liabilities. Results of the
evaluation are used as a basis for adjusting the amount of compensation fee that gradually rise
toward 8% (eight percent). Monthly Wages that are used as the basis for calculating compensation
fee are consist of basic wages and fixed allowances of the month. Highest limit of wage that is used
as the basis for calculating Contribution Pension Guarantees for year 2015 is set at Rp 7.000.000,-
(seven million Rupiah) per month.
BPJS annually adjusts the amount of highest wage using a factor of 1 (one) plus the annual growth
rate of gross domestic product a year earlier then determined and announced the adjustment of the
highest wageat the latest of 1 (one) month after the government institution in the field of Statistics
announced the data of gross domestic product.
Procedure of Payment
Employer of non-state officials shall collect the contribution form participants and deposit it to BPJS.
They are obliged to pay and deposit the contribution fee which is a joint-responsibility with the
Participant to BPJS. Contribution fee should be paid monthly to BPJS at the latest of 15th for each
month.
Delays in depositing teh ccontribution fee by the Employer of non-state officials imposed a fine of
2% (two percent) for each month of delay, calculated from the contribution fee that should be paid
by the Employer. Fines due to delay in depositing the contribution fee are borne entirely by the
Employer that must be paid concurrently with the total contribution fee arrears. Fines on delayed
payment is an asset of the Social Security Fund Pension Guarantees program. Unpaid contribution
fee is a credit of Social Security Fund on Pension Guarantees program.

13. Administrative Sanctions
Employer of non-state officials who do not implement the provisions of Article 4, Article 10
paragraph (2), Article 11 paragraph (2), Article 14 paragraph (5) are subject to administrative
sanctions in the form of written warning, fine, and unable to get specific public services whose
implementation is in accordance with the regulation.
In the case of late payment by BPJS for teh rights of Pension Benefits participants, BPJS will be
subjected to administrative sanctions in the form of a fine of 2% (two percent) per month of the
nominal value that should be accepted by the participant, widow or widower, Child, or Parent.
Supervision
In the case of the Employer of non-state officials have been given administrative sanctions yet the
Employer is still not comply in paying the contribution fee and other obligations, then BPJS shall
report this non-compliance to labor inspectors in the government institution that is responsible for
labor affairs, Provincial local governments and / or District local government (Kabupaten) / city in
accordance with the regulation.
Based on the reports, Labor inspectors on the government institution that is responsible for labor
affairs will conducting examinations of the Employer of non-state officials in accordance with the
regulation. In addition based on the report, labor inspectors could conduct an examination of the
Employer in in accordance with the regulation.

14. For further assistance & consultation, kindly contact :
Muhammad Ikhlas Modjo
E: mim@mimconsulting.co.id
P: +62 815 8200 890
Doddy Oktavianus iskandar
E: doddy.oktavianus@mimconsulting.co.id
P: +62 813 1835 9197
Dian oktaviani
E: dian.okta@mimconsulting.co.id
P: +62 816 184 7683
Disclaimer : this content is for general information purposes only, and should not be used as a substitute
for consultation with profesional advisors
www.mimconsulting.co.id
Wisma Kodel - 11th floor
Jl. HR Rasuna Said Kav. B-4
Jakarta Selatan 12920
T: +62 21 5290 2028
F : +62 21 5290 2027