The government’s universal healthcare coverage
program is only three months away from its effective implementation scheduled
for Jan. 1, 2014, the same year the country will hold its general election.
However, the government has yet to finalize key parts of the
far-reaching program, which will also impact companies and their
Okky Asokawati, a member of the House of Representatives’
Commission IX overseeing health, said the government had to pass at least eight
decrees on the implementation of the 2011 Social Security Providers (BPJS) Law,
which mandates two forms of social coverage.
The first, universal health
coverage, aims to provide basic healthcare to all citizens, and the second,
labor coverage, seeks to provide insurance for work-related accidents, old-age,
pensions and death.
“The government has only passed two decrees on health
coverage, one of them was related to government aid recipients,” the United
Development Party (PPP) lawmaker said recently, adding that all employers from
both the public and private sectors must comply with the universal healthcare
coverage program once it was launched.
The healthcare program will cover all
citizens, including around 63 percent of 240 million Indonesians who, according
to Health Ministry data, already receive aid from various social protection
While universal health coverage will go live in 2014, labor
coverage will be implemented on July 1, 2015.
“We cannot afford any
extensions,” Social Affairs Ministry secretary-general Kasali Situmorang told
The Jakarta Post. “Not passing all decrees before Jan. 1, 2014, would cause PT
Jamsostek and PT Askes to lose their legal status.”
enterprises Jamsostek, an insurance provider for non-civil servants, and Askes,
which provides coverage to civil servants, will be molded into one to carry out
the BPJS program.
Kasali added that the government had also prepared
other necessary decrees.
For example, the decree on the universal
healthcare premium amount had been submitted to the Law and Human Rights
Ministry for review, he said. Another decree in progress would regulate the
investment of premiums considered assets, as well the ledger system of these
In regard to the decree on premiums, the government has proposed
that it deduct 4.5 percent of a worker’s monthly income as payment. “Out of this
amount, employers will be responsible for covering 4 percent and workers are
liable for the remaining 0.5 percent,” Kasali noted, adding that this amount and
its formula would be applicable only between Jan. 1, 2014, and the end of June
2015, when labor coverages comes into effect.
meanwhile, would pay fixed premiums, based on the class of healthcare services
they wanted, instead of having their wages or salaries deducted, he
However, the lack of fixed guidelines nearing the deadline worries
Indonesian Employer’s Association (APINDO) chairman Sofjan
Wanandi said businesses needed to know the “rules of the game” to review the
BPJS’s impact on businesses, including extra costs they would incur to cover
each of their employees.
PT Asuransi Jiwa Manulife Indonesia vice
president director and head of employee benefits Nelly Husnayati said that those
in the private sector “need clarity on the shape of BPJS” benefits from the
program by offering add-on benefits to those covered by the universal health
coverage, as it did not insure certain services such as
World Bank Indonesia senior social protection specialist
Mitchell Wiener reminded that the program, while protecting workers, “should
allow Indonesian companies to be competitive and not impede labor market