Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan is a public legal body tasked to protect all workers with 4 social security programs.
The Government is held responsible for and obliged to implement this national social security program – so as to provide social-economic protection to the people. The program is, however, implemented in view of the financial capacity of the Government. Indonesia, like other developing countries, is developing social security program based on funded social security. It means that the participants will finance the social security. In light of that, the program is limited to working communities who engage in formal sectors.
The formation process of PT Jamsostek (Persero) has long history. It was initiated with Law No. 33/1947 jo Law No.2/1951 concerning work accident, the Regulation of the Minister of Labor Affairs (PMP) No. 48/1952 jo PMP No. 8/1956 concerning Assistance Arrangement for Worker Health Provision Initiatives, PMP No. 15/1957 concerning the Establishment of Social Security Fund Foundation (YDJS), and the introduction of Law No. 14/1969 concerning Basic Employment Affairs. The process of this social security has been running in chronological and transparent fashion.
After recording a number of sound progress and achievement, in terms of legal basis, protection and management, in 1977 another significant milestone of social security development was reached with the issuance of Government Regulation (PP) No. 33 of 1977 concerning Worker Social Insurance Program (ASTEK), under which all employers/private enterprises/SOEs must enrolled their employees in ASTEK Program. In addition, PP No. 34/1977 concerning the Formation of ASTEK Operator Forum, i.e. Perum Astek was issued.
The next milestone was the enactment of Law No. 3 of 1992 conering Worker Social Security Program (JAMSOSTEK). Under PP No. 36/1995, PT Jamsostek was appointed as JAMSOSTEK provider. Jamsostek program provided basic protection to meet the minimum needs of workers and their nuclear families with assurance of uninterrupted household income flow with compensation, in part or in whole, to their lost income as a result of social risk.
Thereafter, in the end of 2004 the Government issued Law Number 2004 regarding National Social Security System. This law was to respond the Amendment to 1945 Constitution with regard to Article 34 paragraph 2, which was amended into: “The State shall develop a social security system for all people and empower marginalized and economically weak population groups based on human dignity values.” This protection benefit aimed to provide secure feeling to workers so that would enable them to give more concentration in embolding their motivation to work and in turn to augment their productivity.
PT Jamsostek (Persero), which was more focused to fulfill the interests and normative rights of Indonesian workers with 4 (four) protection programs, i.e. Work Accident Security Program (JKK), Death Security (JKM), Old Day Security (JHT) and Healthcare Security (JPK) for all workers and their nuclear families continued operating until the introduction of Law No. 24 of 2011.
In 2011, Law No. 24 of 2011 concerning Social Security Provider (BPJS) was enacted. Pursuant to the mandates of this law, on 1 January 2014. PT Jamsostek was renamed into Public Legal Body. PT Jamsostek (Persero), which was transforming into BPJS (Social Security Provider) remained entrusted to run this national social security program, which covered JKK (Work Accident Security), JKM (Death Security) and JHT (Old Day Security) plus new security, i.e. Pension Security as of 1 July 2015.
As an expression of high appreciation of such great and lofty responsibilities, BPJS Ketenagakerjaan continues taking any effort to elevate its competencies in all service lines while developing diverse programs and benefits that can be directly enjoyed by the workers and their families.
Now, with much improved management system programs launched by BPJS Ketenagakerjaan this national social security initiative not only provides benefits for employees and employers but also gives significant contributions for national economic growth and prosperity of all Indonesian people.