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Ministry to scrap restrictions on pension cash-outs
The Manpower Ministry is drafting a regulation to reverse a previous minimum age requirement for accessing pension funds.
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Indonesian Chamber of Commerce and Industry (Kadin) chairman Arsjad Rasjid (left) and Manpower Minister Ida Fauziyah (right) sign an memorandum of understanding during the Kadin national working meeting on Wednesday. (Kadin Indonesia/-)
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anpower Minister Ida Fauziyah said on Wednesday that the ministry would scrap age restrictions on pension cash-outs following heavy protests from labor unions.
She said the ministry was finalizing a revised regulation on old-age benefits (JHT) to that effect and would send it to the House of Representatives “soon”.
“We are finalizing the revision of the JHT regulation. After that, we will coordinate it with the House,” she said during the Indonesian Chamber of Commerce and Industry (Kadin) national working meeting on Wednesday.
In early February, the manpower minister signed a regulation that allowed workers to claim their pension funds only after they reached 56 years of age, effective starting May 4. It was a significant change from the previous regulation, which set no age threshold but stipulated that pension funds would only be disbursed a month after the worker had been laid off or had resigned.
Many labor unions, including the Confederation of Indonesian Trade Unions (KSPI), the Indonesian Trade Unions Association (Aspek) and the Congress of Indonesia Unions Alliance (KASBI), held protests in opposition to the regulation.
Read also: Workers protest restrictions on pension cash-out
Ida went on to say that for the time being, JHT claim rules still operated under Manpower Ministerial Regulation No.19/2015, some clauses of which would be reinstated through the revision to “make it easier” for Workers Social Security Agency (BPJS Ketenagakerjaan) members to claim JHT funds.
