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Jobless benefit claims far exceed estimates for 2021
The Workers Social Security Agency (BPJS Ketenagakerjaan) is under pressure as claims have exceeded initial projections and membership has dropped.
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On the hunt: Job seekers crowd the Education and Career Fair at the Smesco building in Jakarta on Feb. 14, 2014. The COVID-19 pandemic has seen millions of people lose their jobs, including many employed in the informal sector. (JP/Nurhayati)
More Indonesians than expected likely lost their jobs this year, as benefit claims have exceeded preliminary projections.
Workers Social Security Agency (BPJS Ketenagakerjaan) president director Anggoro Eko Cahyo forecast that benefit claims would reach Rp 40.61 trillion by the end of this year, well above the initial projection of Rp 34.89 trillion.
The new forecast is based on figures collected by the agency this year. Claims amounted to Rp 9.1 trillion by the end of March and Rp 19.22 trillion by the end of June, surpassing projected claims of Rp 8.72 trillion and Rp17.44 trillion as of those dates. By August, the claims had reached Rp 26.14 trillion, well above the projected Rp 23.26 trillion.
The numbers represent totals from four programs offered by the agency, with old-age benefits (JHT) being the largest, followed by work accident benefits (JKK), fatality benefits (JKM) and pension benefits (JP).
“First, this is due to the high number of unemployed and people who are out of work, which is why JHT claims have risen. Second, it’s the impact of the COVID-19 pandemic, which has caused JKM claims to rise,” Eko told lawmakers during a meeting with the House of Representatives on Wednesday.
A similar trend was observed in 2020, when benefit claims of Rp 36.45 trillion exceeded the agency’s projection of Rp 34.37 trillion. Prior to the pandemic, by contrast, claims frequently remained below the agency’s projections.
Read also: Unemployment remains high at 6.26% as millions continue to reel from pandemic 'fallout'
