Increasing the Membership of Employment Insurance for the Missing Middle and the Working Age Group


Indonesia continues to make considerable progress to increase the membership of its social insurance program especially for its wage recipients who are mostly formal sectors workers. Unfortunately, coverage for the non-wage recipients/pekerja bukan penerima upah/BPU
who mostly work at the informal sector workers are still very low (about 2.4 million active members as compared to the 28 million active members who are the wage recipients).

Indonesia’s contributory schemes within the social protection system are currently reaching the more affluent members of society in the formal sector. For those living in poverty, the government provides social protection through several noncontributory programs and for the National Health Insurance (JKN) through Penerima Bantuan Iuran (PBI/fully subsidized premiums for the poorest 40 per cent of households). However, the ‘missing middle’ still have limited government support to ensure their basic economic security.