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Jokowi to launch four occupational social security programs
President Joko âJokowiâ Widodo was scheduled to launch four occupational social security programs in Cilacap, Central Java, on Tuesday
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resident Joko 'Jokowi' Widodo was scheduled to launch four occupational social security programs in Cilacap, Central Java, on Tuesday.
The official launch will mark the four programs' implementation on July 1 as mandated by Law No. 24/2011 on social security providers.
The four programs that will be run by the Workers' Social Security Management Agency (BPJS TK) consists of an occupational accident benefit scheme, an old-age risk benefit scheme, a pension scheme and a death benefit scheme.
The President was also expected to simultaneously announce the premiums for the pension scheme.
The President has suspended issuing a government regulation on the pension scheme's premiums because of the deadlocked tripartite negotiations between workers, employers and the government.
The workers and labor unions have proposed a premium of 12 percent with workers and employers contributing 6 percent each while employers have proposed they only pay 1.5 percent. Like the BPJS TK, the Manpower Ministry has proposed 8 percent (5 percent from employers and 3 percent from workers), while the Finance Ministry has proposed 3 percent for fiscal reasons.
'The BPJS TK will respect the President's final decision on the pension scheme's premiums,' BPJS TK president of director Elvyn G. Masassya told The Jakarta Post on Tuesday.
He said the President would be wise to take a moderate figure by setting an 8 percent premium so that Indonesia would not lag behind other ASEAN countries in implementing social security programs.
'With the 5 percent pension scheme, the total contribution to the four occupational social security programs will be 20 percent,' he said.
He added the President would launch the four programs in Teluk Penyu, a bay for turtle conservation in Cilacap.(+++)
