About Indonesia

After an almost 10-year delay, the law on the national social security system has been implemented on Jan 1, 2014. This Law No. 40/2004 is equivalent to the Old Age, Survivor, Disability and Health Insurance. Act or the Social Security Law of the US. Both laws were enacted after severe financial crises that alerted the countries to the crucial need for a social security system to overcome financial catastrophes.


While the US law covers four programs, Indonesia’s national social security covers five programs, namely health insurance, occupational injuries, provident funds, pension and death benefits. Meanwhile, the administration of Indonesia social security is under two different quasi government agencies under Social Security Providers (BPJS), one catering to health coverage and the other in charge of the other four programs. The Indonesian model follows the similar separation of short-term and long-term programs of social security in Taiwan, the Philippines and South Korea.