Jokowi Allows Payment Postponement of BP Jamsostek Premium

TEMPO.CO, Jakarta - President Joko 'Jokowi' Widodo signed Government Regulation No. 49 of 2020 on the payment adjustment of the employment social security program during the non-natural disaster of Covid-19.

The policy also regulates discounts and payment postponement of the pension insurance program at the Workers Social Security Agency (BPJS Ketenagakerjaan) or BP Jamsostek.

Issued on Monday, August 31, 2020, the policy aimed at maintaining the people’s purchasing power amid the pandemic. Several adjustments noted in the rule are the 

The regulation, set on Monday, August 31, 2020, was released to help people whose purchasing power was disrupted due to the pandemic. A number of adjustments stipulated in the policy are the delay in payment deadline of the occupational accident benefit (JKK), old-age risk benefit (JHT), and pension benefit (JP) every month.

The government also provided a discount on the payment of JKK and death benefits (JKm) up to 99 percent. This means, participants only need to pay one percent of the premium. 

Previously on August 23, 2020, the Confederation of Indonesian Workers Unions (KSPI) president Said Iqbal expressed his objection to the government’s plan to delay the payment of BP Jamsostek until the end of 2020. He considered such a policy inappropriate. “By suspending the payment, the one who gets the benefit is entrepreneurs,” said Said in an official statement.

Said explained that entrepreneurs did not need to pay the premium but workers would incur losses because their old-age risk insurance value and pension fund did not increase as long as contributions were stopped.

Read also: Jokowi Says Wage Subsidy as Rewards for Companies, Workers

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