Global Network Asia - Indonesian House of Representatives passes social insurance provider bill

The Indonesian metal union federation FSPMI, member of the Global Network and partner in the Globalising decent work project, booked an important success in their struggle for social security for all Indonesian citizens. The parliament and government agreed on 28 October 2011 to pass the bill on social security providers. The new law stipulates that at the latest by 2015 two different social security providers (BPJS I and II) will manage respectively universal healthcare and occupational accident, death, old age and pension for all workers in the formal sector.

The existing social security systems have been the target of criticism because of their discriminative and limited character and the lack of financial control. Currently only 47 per cent of the population enjoys social security or assistance, less than 1 per cent is covered by pension and poor citizens cannot afford basic health care. Very encouraging is that the new law aims to include workers active in the informal economy, a collective that represents about 70 per cent of the labour force in Indonesia.