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Workers protest restrictions on pension cash-out
Widespread discontent is emerging over the government’s decision to prevent workers from claiming accrued old-age benefits to cover phases of unemployment.
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A service officer speaks to a customer through a video call at social security insurance provider BP Jamsostek Salemba in Jakarta on June 25, 2020. (JP/Seto Wardhana)
F
itria Yuniarti, a freelance worker from Yogyakarta, remembers being laid off in April 2021 by a company she had worked at for around a decade. For six months, she stayed afloat using her savings and proceeds from a small business selling used books. Alas, her money was draining fast as she was also supporting her family.
In October, Fitria realized that she could cash out her old-age benefits (JHT). She used the funds to pay off her debt and cover payables including tax, reserving the rest to meet her daily needs and to hopefully tie her over until the next stable job.
Others in her position will find themselves unable to do the same, as the government has changed the rules to prevent JHT payouts before workers turn 56, with the exception of death or disability.
According to Manpower Ministry Regulation No. 2/2022, the policy will take effect in May. Under the prevailing rules, workers that resign or have been laid off can access the benefits after a one-month waiting period.
While she has received the benefits she accrued so far, Fitria disapproves of the changes. Now in her 30s, she said finding a permanent job was getting harder.
“If I become jobless again, I would hope I could access the JHT again. Waiting until 56, that’s so inconvenient,” Fitria told The Jakarta Post on Monday, adding that she would think twice before signing up to the old-age benefits scheme under the new rules.
The buzz the change has generated on social media shows many share Fitria’s view, and a petition on change.org gained more than 350,000 signatures within three days after emerging on Friday.
