PP JHT Revised; BPJS Says No Problem

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  • Dirut PT Jamsostek Elvyn G. Masassya. TEMPO/Aditia Noviansyah

    Dirut PT Jamsostek Elvyn G. Masassya. TEMPO/Aditia Noviansyah

    TEMPO.CO, Jakarta – The Workforce Social Security Agency (BPJS Ketenagakerjaan) says the revision of government regulation on retirement fund (PP JHT) disbursement will not affect the agency's finances.

    BPJS Ketenagakerjaan president director Elvyn G. Masassya said the company will not suffer a deficit with the change in the regulation.

    The PP JHT reaped protests soon after it was passed in early July, as it stipulates that workers can only withdraw 10% the fund after 10 years of membership. It also regulates that full withdrawal is only available after the worker is 56 years old. Another option is to disburse 30 percent, but only for home purchase down payment.

    A public outcry surfaced, asking for a full disbursement for workers that got fired or decided to resign.

    Following public protests and pressure from the House of Representatives (DPR), President Joko Widodo then ordered Labor Minister Hanif Dhakiri to revise the rule in two days.

    However, the agency's head of communication division Abdul Cholik said that too frequent withdrawals will have indirect effect on the agency's fund management. 

    According to Abdul, the fund managed by the BPJS is not only beneficial for the participants, but it also serve as a financial pillar as a backup liquidity in times of crisis.

    The BPJS currently manages its fund through five instruments, including mutual funds, stocks, bonds, and deposits.

    From January to May 2015, the BPJS has disbursed Rp5.6 trillion retirement fund claims for 400,078 participants.