SOCIAL SECURITY SCHEMES
8.1 BPJS Ketenagakerjaan
Indonesia's national social security schemes include the manpower scheme (BPJS Ketenagakerjaan) and the healthcare scheme (BPJS Kesehatan). These schemes are mandatory for Indonesian nationals and foreigners working in Indonesia for at least six months. Expatriates must show their BPJS participation when renewing work permits.
Premium contributions for the schemes:
|
Social security scheme |
Areas covered |
As a percentage of regular salaries/wages |
|
|
Borne by employers |
Borne by employees |
||
|
BPJS Ketenagakerjaan |
Working accident protection |
0.24 – 1.74% |
- |
|
Death insurance |
0.3% |
- |
|
|
Job loss insurance |
-1) |
- |
|
|
Old-age saving |
3.7% |
2% |
|
|
Pension plain2)3) |
2% |
1% |
|
|
BPJS Kesehatan4) |
4% |
1% |
|
|
1% for additional family member5) |
|||
Notes:
- The job loss security scheme is a new scheme under BPJS Ketenagakerjaan introduced by the government in Law Number 11 of 2020 (Omnibus Law). This scheme is intended to give compensation in the form of cash benefits, access to labor market information, and job trading to workers/labors who are terminated from their employment. There is no additional contribution that needs to be paid by both the employers and employees on this new scheme, as the contribution for the job loss security scheme is already inclusive in the existing contributions for working accident and death insurance, plus subsidy from the government.
- The regular salary/wage cap for calculating the pension insurance contribution is IDR 9,559,600 per month, which is valid as from March 2023. The amount may be updated from time to time.
- Contribution to the pension plan is not mandatory for expatriates.
- The regular salary/wage cap for calculating the healthcare contribution is, at the minimum, the amount of regional minimum wage and, at the maximum, IDR 12 million per month. The amount may be updated from time to time.
- The mandatory premiums cover husband, wife, and three dependents. Additional family member can be covered with additional premiums.
8.2 Tapera (Public Housing Savings)
Tapera, as defined by Article 1 (1) of PP 21/2024, stands for Public Housing Savings. It is a fund where participants deposit money periodically over a certain period. These funds can only be used for housing financing or will be returned with accumulated results once the participation ends.
8.2.1 Tapera Participants
The program is open to all Indonesian citizens and foreign citizens with a valid work visa for at least six months. According to PP No. 25 of 2020, participants are categorized into workers and independent workers who earn at least the minimum wage.
- Workers: Must have been working for at least 10 years or be married at the time of registration.
- Independent Workers: Those earning below the minimum wage can also register.
Participants in the worker category include:
- Civil Servant Candidates (CPNS)
- State Civil Servants (ASN)
- Indonesian Military Soldiers (TNI)
- Indonesian Military Student Soldiers
- National Police Members
- State Officials
- Employees of state/regional-owned enterprises
- Employees of village-owned enterprises
- Employees of privately owned enterprises
- Other wage earners
Participation ends upon retirement, reaching 58 years of age for self-employed workers, death, or not meeting participation criteria for five consecutive years.
8.2.3 Amount of Tapera Savings
According to the Indonesia Baik website managed by the Ministry of Communication and Information Technology (Kominfo), participants contribute 3 percent of their monthly salary to Tapera. Employers contribute 0.5 percent, and employees contribute 2.5 percent, with payments due by the 10th of each month. Independent participants' contributions are based on their average monthly income from the previous year, within a certain limit.
8.2.4 Benefits of Tapera
Article 37 of PP 25/2020 outlines benefits for low-income group (MBR) participants, including:
- Home Ownership Credit (KPR)
- Home Building Credit (KBR)
- Home Renovation Credit (KRR)
These benefits come with long maturities of up to 30 years and fixed interest rates below market rates. Non-MBR workers receive savings and earnings upon retirement or reaching 58 years of age.
Conditions for using Tapera funds include:
- Available only for the first home
- Granted only once
- Specific value limits for home financing
Eligible homes include single houses, row houses, and flats. Financing can be done through a lease-purchase mechanism regulated by the Tapera Management Fund.
8.2.5 Conditions for Using Tapera
To utilize Tapera's home financing services, participants must meet the following criteria:
- Be a participant for at least 12 months
- Belong to a low-income group
- Not already own a home
- Use the funds for the first home purchase, construction, or repair
Housing financing will be provided based on participation period, deposit payments, urgency of home ownership, and fund availability.
