Since 2014, Indonesia has been implementing the National Social Security System (SJSN) to provide socio-economic protection for its citizens. However, compared to other Southeast Asian countries, Indonesia lags behind in providing social protection. Globally, Indonesia ranks low in providing social protection.
This was conveyed by Ippei Tsuruga, the Social Protection Programme Manager at the International Labour Organization (ILO) for Indonesia, during the seminar ‘Just Transition & Climate Change: The Role of Social Protection and Impacts on Workers’ at the UGM Faculty of Economics and Business (FEB UGM) on Mar. 19-20 2025.
Tsuruga pointed out that the social assistance benefits for children and workers in Indonesia amount to 25.4%, while for work accidents, it is 22.8%.
Persons with disabilities receive only 2.5%, and the elderly receive 14.8%.
“Indonesia ranks third lowest in providing social protection for the elderly,” he said.
Tsuruga then compared Indonesia’s social protection program with that of his home country, Japan.
In Japan, laid-off or unemployed workers receive benefits for three years.
In addition to financial support, they receive training and job placement opportunities.
Once re-employed, they still receive a reemployment allowance.
The amount of benefits varies based on age and years of service.
“This is why Japan’s employment rate reaches 80.9%. The employment rate for the elderly is also high, with over 50% for those aged 65-69,” Tsuruga explained.
He assessed that Indonesia’s social security, managed by PT Jaminan Sosial Tenaga Kerja (Jamsostek), includes Work Accident Insurance (JKK), Death Insurance (JKm), Old Age Security (JHT), Job Loss Insurance (JKP), and Pension (JP).
Unfortunately, only formal workers automatically receive this protection.
“The informal sector has different regulations. Companies do not register their workers for social security, so they (workers) must register themselves,” Tsuruga said.
Dr. Qisha Quarina, an Economics lecturer at FEB UGM, shared insights from her research on social security for coal mining workers.
She noted that around 336,000 people work in the coal sector, most of whom are formal workers and thus receive social protection from the state.
Dr. Quarina highlighted that while many workers are formal, they are bound by Fixed-Term Employment Contracts (PKWT).
Typically, PKWT applies to contract and freelance workers.
Many workers on PKWT are either released or promoted to permanent employees under Indefinite-Term Employment Contracts (PKWTT) after completing a three-year contract.
According to Dr. Quarina, this system disadvantages workers and makes them vulnerable to sudden layoffs.
“Many workers remain vulnerable to labor disruptions, especially amid the energy transition and changes in labor demand in the sector,” she concluded.
Author: Tiefany
Editor: Gusti Grehenson
Post-editor: Lintang
Photographer: Donnie