121
Jurnal Syntax Transformation
Vol. 2 No. 1, Januari 2021
p-ISSN : 2721-3854 e-ISSN : 2721-2769
Sosial Sains
SOCIAL SECURITY CHALLENGES AND ITS STRATEGY DURING PANDEMIC
COVID-19 IN INDONESIA
Rekson Silaban dan Adis Iman Munandar
Universitas Indonesia (UI) Depok Jawa Barat, Indonesia
Email: [email protected], dan [email protected]
ARTICLE INFO
ABSTRACT
Diterima 02 Januari 2021
Diterima dalam bentuk revisi
10 Januari 2021
Diterima dalam bentuk revisi
15 Januari 2021
Keyword:
Strategy During; Pandemic
Covid-19; Social Security and
In early 2020, the coronavirus disease or Covid-19 pandemic
hit the world, including Indonesia. This pandemic triggered the
emergence of a policy of lockdown or limitation in the
operation of public facilities and Large Scale Social
Restrictions (PSBB) which aim to reduce the spread of the
virus. Covid-19 pandemic and PSBB policy had been affected
social security institution seriously due to massif resigned
from social security membership as the consequences of
massif lay off in many companies. The worsening pandemic
situation caused to decline in social security coverage and
created an obstacle to provides its service in due time. This
paper aims to explain the challenges which have been facing
by BP Jamsostek as social security operator during the
pandemic and how they adapt to new circumstances while
keep maintaining their obligation to provide service as
regulated while refraining from spreading of virus covid-19.
By using a method of description which is taken from
empirical experiences of BP Jamsostek and some international
experiences, the paper is expected to arrive with the result of
the conclusion that in time of the pandemic, the social security
role remains vital and even more relevant to prevent more
workers falling deeper into poverty. Based on BP Jamsostek
experienced during the pandemic there was an unprecedented
increase of claims asking for their Old Age saving. The
problem is social security office was also under lockdown in
an early stage of the pandemic and then after some months
only allowed half of the employees to work from the office.
This situation forced management to find a new model of
services that suitable for the pandemic situation. Learning
from other social security international practices, BP
Jamsostek now can serve workers through a technological
innovation called "Lapak Asik" or to serve without physical
contact by utilizing digital technology.
Introduction
COVID-19 has changed lives around
the world. It has been identified in more than
200 countries around the world, while the
global transmission rate continues to increase
at an exponential rate (Dutta & Fischer,
2020). All countries are trying different ways
to deal with the current crisis, there is still a
lot of uncertainty about how the situation will
develop in the future. Pandemic COVID-19
will present two major waves of these
disruptions. The first is the supply-side
Rekson Silaban dan Adis Iman Munandar
122 Jurnal Syntax Transformation, Vol. 2 No. 1, Januari 2021
disruptions. Supply disruptions will spread
caused export supplies will fall with declines
in production. The second wave will be the
result of declining demand (Kerr, 2020).
Apart from the direct effects of disease
transmission, decreased health and mortality,
widespread social and economic disruption
will have a far-reaching impact on human
well-being. A developing country like
Indonesia will need more investment in
public health where healthcare systems are
less developed and population density is high
(Khoo & Lantos, 2020).
Escalation of Pandemic Covid-19 in
Indonesia continues growing since started
spreading in March 2020, included in the area
of social security services. As being mandated
in the basic constitution 1945 article 28H
paragraph 3 and article 34 paragraph 2
mentioned ''all workers are entitled to social
security''. For the implementation of these
rights, the government has formed the
Employment Social Security Operator Body
or called BPJS Ketenagakerjaan through Law
number 24 of 2011. BP Jamsostek provides
social security programs for four types of
programs, namely; Work Accident Benefits
(JKK), Death Benefits (JKM), Old Age
Benefits (JHT), and Pension Benefits (JP).
In the BP Jamsostek report on
December 31, 2019, it has succeeded in
recruiting 54.9 million workers as
participants, out of the 90.9 total workers
targeted according to the road map set by the
government (Book of strategic plan BPJS
Ketenagakerjaan, 2017). So there are still 40
million participants who have not been able to
be acquired due to several obstacles, such as
weak law enforcement, regulatory
inconsistencies, low awareness of
participants, especially informal workers,
inadequate services, and weak recruitment
strategies. In efforts to meet the target of
expanding participants to all workers,
Indonesia is experiencing new problems with
the emergence of the Covid 19 pandemic
which began to spread in March 2020. This
new problem adds to the burden of BP
Jamsostek in meeting the universal coverage
target as stated in the road map BP Jamsostek.
Expansion of membership 2017-2021. From
March to September 2020, there has been a
decrease in BP Jamsotek participants as many
as 4.9 million people whose data can be seen
from taking Old Age Security claims, as a
result of many companies that go bankrupt,
laying off their workers which subsequently
leads to massive layoffs.
Tabel 1.
Membership Data of BPJS
Ketenagakerjaan
Targ
et
year
realization
realization
202
0
31-Aug-
20
%
%
+/-
27.3
30.8
48
18.638.28
6
69.8
6%
19.6
29.9
27
(991.6
86)
650.
000
487.451
74.9
9%
544.
500
(57.04
9)
4.96
2.74
8
1.911.670
38.5
2%
2.71
2.03
1
(800.3
61)
8.30
9.10
4
7.853.359
94.5
2%
11.2
79.7
54
(3.426
.395)
40.6
02.7
36
28.890.76
6
71.1
5%
34.1
66.2
57
(527.5
491)
20.577.41
9
20.4
31.4
45
145.9
47
11
11
531.536
369.
756
161.7
80
21.108.96
6
20.8
01.2
01
307.7
65
Social Security Challenges and Its Strategy During Pandemic Covid-19 In Indonesia
Jurnal Syntax Transformation, Vol. 2 No. 1, Januari 2021 123
39.215.70
5
40.0
61.4
17
(845.7
12)
487.462
544.
500
(57.03
8)
2.443.206
3.08
1.78
7
(638.5
81)
7.853.359
11.2
79.7
54
(3.426
.395)
49.999.73
2
54.9
67.4
58
(4.967
.726)
Source; BP Jamsostek, September 2020
(BPJS, 2020)
Several studies on social security have
been carried out by several countries. for
example with India focusing on the Small
medium enterprise aspect (OECD, 2020),
China focusing on social insurance, social
assistance, and social welfare (Lu et al.,
2020). However, the Indonesian social
security context has not been much studied.
This study focuses on exploring the
Indonesian context in dealing with Covid 19
in social security in the labor aspect.
Research methods
Methods: The research method used in
writing this journal is a descriptive method.
Researchers used secondary data from BP
Jamsostek. Besides, researchers used
literature data from the OECD, ILO, and
ISSA which discussed strategies in dealing
with the Covid-19 pandemic related to social
security. Secondary data and literature that
the researcher used as a reference, then the
researcher compared it with the context of
social security in Indonesia to then conclude.
Results and Discussion
All countries are currently facing labor-
related problems as a result of the Covid-19
pandemic. In light of the enormous challenge
that firms across all sectors are facing in
dealing with a combined supply and demand
shock, immediate measures are needed to
secure jobs and incomes and grant firms
flexibility to quickly recruit staff
replacements, where necessary (OECD,
2020). Various countries have taken various
strategic actions related to the threat of the
Covid-19 pandemic, especially those related
to social security. Some are using Financial
protection in accessing health care, Leave
benefits, Unemployment insurance, wage
subsidies. and others, Changes in social
security contribution and benefits, Cash
transfers, in-kind transfer, Other mechanisms
to support household incomes. The table
below is a summary of the government's
strategy in Middle Eastern countries in
dealing with the effects of the COVID-19
pandemic in terms of social security.
Table 2.
Strategies To Deal With The Covid-19
Pandemic In Middle Eastern Countries
Relate To Social Security
Country
Financi
al
protecti
on in
accessi
ng
health
care
Leav
e
bene
fits
Unemplo
yment
insurance
, wage
subsidies.
and
others
Changes
in social
security
contributi
on and
benefits
Ca
sh
tra
nsf
ers
in-
kin
d
tra
nsf
er
Other
mechanism
s to support
household
incomes
Algeria
√
√
√
√
√
Bahrain
√
√
√
√
√
Djibouti
√
√
√
√
Egypt
√
√
√
√
√
√
Iran
√
√
√
√
√
Iraq
√
√
√
√
Jordan
√
√
√
√
√
√
KSA
√
√
√
√
√
√
Kuwait
√
√
√
√
√
Lebanon
√
√
√
√
√
Libya
√
Mauritania
√
√
√
Morocco
√
√
√
√
√
√
Opt
√
√
√
√
√
√
Oman
√
√
√
√
√
Qatar
√
√
√
√
Sudan
√
√
√
Syria
√
√
√
√
Tunisia
√
√
√
UAE
√
√
√
Yemen
√
Source: processed based on (IBC-SP, 2020)
Rekson Silaban dan Adis Iman Munandar
124 Jurnal Syntax Transformation, Vol. 2 No. 1, Januari 2021
Other countries have their methods of
dealing with these challenges, for example,
the United States emphasizes employment,
cash transfers, emergency grants (Bowers,
2020). Then Singapore emphasized
employment by doing jobs growth incentive
will support firms when they hire local
employees over the next six months, by
subsidizing the salaries of all these new local
hires for one year (Oh, 2020). South Africa
doing some incentives in the form of cash
transfers in dealing with similar problems
with Uni Emirat Arab, namely making cash
transfers with certain criteria, for example,
the fund offers Dh15,000 to Dh50,000 grants
to individuals and small businesses in the
creative fields who are undergoing financial
difficulties because of the pandemic (Chaves,
2020). Saudi Arabia protects its workers
related to covid-19 (Salama, 2020).
Meanwhile, based on the World Bank report
(Gentilini et al., 2020) overall, cash transfers
include 222 countries COVID-related
measures representing one-third (32.4%) of
total COVID-related social protection
programs. Based on this report, cash transfers
have been the most policy taken by many
countries in dealing with this problem.
Indonesia has its uniqueness in making
a strategy to deal with the impact of the
Covid-19 pandemic, which is a combination
of the above strategic categories consisting of
social assistance, cash transfers, incentives,
health care, and relaxation to workers in
Indonesia which are directed through BPJS
Ketenagakerjaan.
A. Government efforts to help economic
sustainability through social security
Various countries are facing so
many problems related to the Covid-19
pandemic. The latest OECD projections
suggest that 2020 will witness the worst
recession in the 60-year history of the
OECD, with the global economy
contracting by 4.5%. Many countries
will not restore 2019 to 2022 output
levels at the earliest. The crisis has taken
away jobs created since the global
financial crisis of 2008 (GURRÍA,
2020). The impact of the Covid-19
pandemic on employment might be
short-term, but it is more serious and
complicated than the situation of SARS
in 2003 (Lu et al., 2020). Governmental
departments in many countries have
formulated various policies for different
regions and different types of enterprises
to reduce social insurance contributions.
Likewise, Indonesia has its policy
to provide economic relaxation through
the BPJS Ketenagaerjaan. To reduce the
burden on companies due to COVID-19,
the government issued 2 policies to help
BP Jamsostek participants and assistance
to employers. The first policy is to
provide contribution relaxation
assistance through government
regulation (PP) Number 48 of 2020.
Through this policy, entrepreneurs
receive the following concessions.
Indonesian government policies
regarding relaxation which are executed
by BPJS Ketenagakerjaan include the
following:
1.) Extension of the Contribution
Payment Deadline
If in the laws and regulations
governing the Jamsostek program, the
deadline for payment of JKK, JKM,
JHT, and JP contributions is no later
than the 15th of the following month,
then in this PP it is changed to be no
later than the 30th of the following
month. This means that the
entrepreneur gets a 15 days
postponement. If the 30th falls on a
holiday, contributions are paid on a
working day before the 30th.
2.) Work Accident Security Contribution
(JKK) and Death Insurance (JKM)
Contribution relief by 99%.
Social Security Challenges and Its Strategy During Pandemic Covid-19 In Indonesia
Jurnal Syntax Transformation, Vol. 2 No. 1, Januari 2021 125
The government provides a
reduction of JKK and JKM
contributions by 99% so that the
company's monthly payment
obligation is 1% of the contribution.
The changes in JKK fees are as
follows:
• The risk level is very low, from
0.24% to 0.0024% of wages
• Low-risk level, from 0.54% to
0.0054% of wages
• The level of risk is moderate, from
0.89% to 0.0089% of wages
• High-risk level, from 1.27% to
0.0127% of wages
• The level of risk is very high, from
1.74% to 0.0174% of wages.
Meanwhile, the JKM
contribution decreased from 0.30% to
0.0030% of the monthly wages. This
waiver requirement applies to
participants who register for BPJS
Ketenagakerjaan before August 2020,
provided that they have paid the JKK
and JKM contributions until July
2020. Participants who register after
July 2020 also receive the above
relief, provided that they pay the JKK
and JKM contributions for two. the
first month and the waivers take
effect in the third month.
3.) Postponement of Pension Security
Contribution (JP)
The amount of JP contributions
is not reduced, or according to the
prevailing provisions, which is 3% of
a month's wages, with details of 2%
being paid by the employer and 1%
borne by the worker. However, PP
No. 49/2020 provides concessions in
the form of postponing payment
limits with the following conditions:
a.) As much as 1% of JP
contributions must be paid by the
employer to BPJS
Ketenagakerjaan every month
according to the deadline set by
PP, namely the 30th of the
following month.
b.) The remaining 99% of JP dues
are paid in full or in stages,
starting no later than 15 May 2021
and completed no later than 15
April 2022.
This relaxation of BPJS
Ketenagakerjaan contributions has
received positive responses from
business actors. The hope is that this
policy will help extend the company's
resilience amid the uncertain business
climate.
Conclusion
Based on the description above, to deal
with the Covid-19 pandemic where it is not
yet known when it will end, BP Jamsostek as
a mouthpiece for social security in Indonesia
with a role as an institution that protects
workers in Indonesia needs to do several
strategic things as follows:
1. Continue to improve the service system
without physical contact that can be
accessed easily and cheaply by
participants, both informal workers and,
formal workers. The online service system
without physical contact has not been able
to solve the claim problem, so offline
service without physical contact still needs
to be done to accommodate participants
who have not been able to adapt to the
online system.
2. To expand the membership coverage that
drastically decreased due to the COVID-
19 pandemic, BP Jamsostek needs to
increase collaboration with the central and
local governments and other stakeholders,
to re-recruit participants who have left BP
Jamsostek.
3. The subsidized assistance provided by the
government to workers and relaxation
assistance for employers should be used to
Rekson Silaban dan Adis Iman Munandar
126 Jurnal Syntax Transformation, Vol. 2 No. 1, Januari 2021
promote the good name of BP Jamsostek
to convince them to register as
participants.
Bibliography
Bastard, P., Rosen, L. B., Zhang, Q.,
Michailidis, E., Hoffmann, H.-H.,
Zhang, Y., Dorgham, K., Philippot, Q.,
Rosain, J., & Béziat, V. (2020).
Autoantibodies against type I IFNs in
patients with life-threatening COVID-
19. Science, 370(6515).
Bowers, N. (2020). City of Henderson
launches small business recovery grant
program.
HendersonNow.Com/COVID19.
Retrieved from.
BPJS. (2020). Rencana Strategis BPJS Tk.
Jakarta. Retrieved from.
Chaves, A. (2020). (June 15). First phase of
National Creative Relief Programme to
give grants to 50 freelancers and 37
companies.
Dutta, A., & Fischer, H. W. (2020). The local
governance of COVID-19: Disease
prevention and social security in rural
India. World Development, 138, 105234.
Gentilini, U., Almenfi, M., Orton, I., & Dale,
P. (2020). Social Protection and Jobs
Responses to COVID-19.
GURRÍA, A. (2020). Tackling the
coronavirus (COVID-19): Contributing
to a global effort. Organisation for
Economic Co-Operation and
Development (OECD), Viewed.
IBC-SP. (2020). Country responses and
policy considerations Regional UN
Issue-Based Coalition on Social
Protection (IBC-SP) July 2020.
Retrieved October 27, 2020, from.
Kerr, W. A. (2020). The COVID‐19
pandemic and agriculture–Short and
long run implications for international
trade relations. Canadian Journal of
Agricultural Economics/Revue
Canadienne d’agroeconomie.
Khoo, E. J., & Lantos, J. D. (2020). Lessons
learned from the COVID‐19 pandemic.
Acta Paediatrica.
Lu, Q., Cai, Z., Chen, B., & Liu, T. (2020).
Social policy responses to the covid-19
crisis in China in 2020. International
Journal of Environmental Research and
Public Health, 17(16), 5896.
OECD. (2020). Supporting people and
companies to deal with the theCOVID-
19 virus: Options for immediate
employment and social-policy response.
Retrieved October 27, 2020, from.
Oh, T. (2020). Covid-19 support measures:
DPM Heng announces S$1b programme
to subsidise salaries of new local hires
for a year. Retrieved October 27, 2020,
from.
Salama, S. (2020). (August 28). Saudi food
delivery workers covered by COVID-19
relief package. Gulfnews.Com.
Retrieved from.
Wheaton, M. G., Abramowitz, J. S., Berman,
N. C., Fabricant, L. E., & Olatunji, B. O.
(2012). Psychological predictors of
anxiety in response to the H1N1 (swine
flu) pandemic. Cognitive Therapy and
Research, 36(3), 210–218.
Wu, J. J., Atkinson, E. C., Leichman, L. P.,
Patel, H., Iqbal, S., Du, K. L., Bizekis,
C., Goldberg, J. D., Thomas, C. R., &
Cohen, D. J. (2020). A phase I/II
multisite study of nivolumab and
carboplatin/paclitaxel with radiation
therapy (RT) in patients with locally
advanced esophageal squamous cell
carcinoma (ESCC). American Society
of Clinical Oncology.