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Social Security Law still faces a string of challenges
The 2004 Social Security Law remains dead in the water pending the passage of the Social Insurance Management Agency (BPJS) bill, and the issuance of supportive regulations on periodic healthcare assistance and health insurance
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he 2004 Social Security Law remains dead in the water pending the passage of the Social Insurance Management Agency (BPJS) bill, and the issuance of supportive regulations on periodic healthcare assistance and health insurance.
“Right now, we are waiting for the passage of the BPJS bill,” Bambang Purwoko of the National Social Security Council said during a oneday seminar on the social security scheme at the Islamic University Syarif Hidayatullah in Jakarta.
The Social Insurance Management Agency (BPJS) bill is one of the keys to the full implementation of the 2004 Social Security Law.
Bambang added that, once passed, the Social Insurance Management Agency law would facilitate the implementation of the Social Security Law within the existing social insurance management agencies, such as Jamsostek (insurance for workers), Taspen (pension funds), Asabri (social insurance for the Indonesian Military) and Askes (health insurance mostly for civil servants).
“We do not want to throw out any of the previous laws,” Bambang said.
He added that the harmonization could only be once the House passed the Social Insurance Management Agency bill.
“Harmonization is the adjustment of the law on the social insurance management agencies laws to bring them into line with the 2004 law,” he said.
“According to the agencies, they have already been implementing the Social Security Law, but are still limited liability companies, whereas, to fully function within the law, they should be legal bodies that do not have limitations in serving the public,” he added.
Harmonization, as a part of the implementation of the 2004 law, poses other challenges that already have legal basis.
For example, Taspen was established under the pension scheme for civil servants that was regulated under a law in 1969 and some other laws and government regulations.
“So, one way is by letting the civil servants who were included within the previous system continue the program, while the new system can be applied by civil servant candidates as well,” he added.
There are a few more regulations that have to be formulated relating to sanctions against companies who refuse to obey the law, pensions, workplace accidents and insurance.
The implementation of the 2004 Social Security Law was one of the main reasons for demonstrations organized by the Action Committee for Social Security on May 1 in commemoration of World Labor Day.
Around 50,000 people from labor unions, NGOs, student groups and mass organizations demonstrated in Jakarta alone.
The Action Committee for Social Security said they wanted to raise awareness among all parties that the social security scheme was not only useful for laborers, but for all elements of society.
The government so far only provides insurance schemes for poor people and civil servants.
The social insurance management agency bill is one of the keys to the full implementation of the 2004 Social Security Law.
