Maintaining and Expanding Membership as an Effort to Ensure the Sustainability of the Social Insurance for Employment Program

Since 2018, TNP2K has consistently recommended that the Government of Indonesia reform its social protection system, including by expanding membership in the social insurance for employment program as part of the social protection system for workers in both the formal and informal sectors. Social insurance for employment program membership outreach to workers in the informal sector is important given their consistent and ongoing low level of membership compared to workers in the formal sector. In addition to expanding membership, TNP2K also sees the importance of retaining currently registered members in the social insurance for employment program. During the COVID-19 pandemic, there has been a decline in membership, especially in the formal worker or wage earner segment (Penerima Upah: PU).

TNP2K continues to proactively conduct various studies and analyses on social insurance for employment policies and programs and present the results through various consultations and discussions with stakeholders and policy implementers to seek further input and encourage improvements in its design and implementation. Activities that have been carried out include studies and analyses of social insurance for employment regulations and policies, the state of the informal economy and access to social insurance for employment, and actuarial calculations aimed at finding alternative financing and contribution options that can serve as incentives to promote membership in the social insurance for employment program. These various activities are expected to strengthen and support the argument about the importance of comprehensive social protection for all Indonesians‒-especially vulnerable workers‒-through membership in the social insurance for employment program.

This rapid assessment entitled “Maintaining and Expanding Membership as an Effort to Ensure the Sustainability of the Social Insurance for Employment Program” is an important part of establishing, improving, and developing a comprehensive Indonesian social protection system. Indonesia’s social protection system is expected to be able to protect all groups in society in the future, including building a social insurance system that can provide benefits to workers in both the formal and informal sectors.