1. Jakarta, 13 December 2011 Sinta Satriana
Social Protection Assessment Based National Dialogue in Indonesia: Existing schemes, gaps, recommendations and scenarios
Jakarta, 13 December 2011
Sinta Satriana

2. < 1% of informal economy covered by Jamsostek pilot program
Health
“Official” Coverage
Jamsostek: 18% of private sector employees
100% of civil servants / police / military & families
< 1% of informal economy covered by Jamsostek pilot program
Jamkesmas and Jamkesda:
100% poor & near poor covered
Near poor & Poor
Private sector
Civil serv
Formal Economy
One third
Informal economy
One third
two third

3. Jamsostek for informal Economy
Health
Real coverage
18% of private sector employees covered
Jamsostek for informal Economy
100% of the civil servants / police / military & families through Askes
Jamkesmas & Jamkesda,
50% of the poor through Jamkesmas & additional % through Jamkesda
Near poor & Poor
Private sector
Civil serv
Formal Economy
One third
Informal economy
One third
two third

4. Non-poor informal economy
Health
Coverage mandated by Law 40/2004: 100%
Contribution paid by workers, in nominal amount
Contribution paid by the government
Contribution paid by workers&employers, in % of salary
Near poor, Poor,
disabled, unemployed
Non-poor informal economy
Formal Economy

5. Health Main gaps and implementation Issues: Main Recommendation
Non poor informal economy workers and their families not covered
Low coverage in the private sector, desoite mandatory participation
Targeting issues lack data on beneficiaries and utilization of Jamkesmas
Unclear benefit package in Jamkesmas leading to unanticipated out-of-pocket payments
Exclusion of diseases such as HIV and cancer
Main Recommendation
Develop a specific benefit package for the Jamkesmas program and Improve database system
Improve linkages with Health Care supply (reception of patients, payment system of the hospitals…)
Increase enforcement of Jamsostek Law in the private sector
Increase coverage of Informal Economy workers through the design of adapted enrolment & contribution mechanisms, a mapping of IE workers, the expansion of Jamkesmas to a larger population, the development of regulations to implement Law #40, 2004, etc.

6. Costing Exercise Low Scenario: Costs 0.27% of GDP b 2020
Extension of Jamkesmas to the uncovered poor due to mis-targeting
(Current Jamkesmas cost assumption)
Inclusion of HIV treatments and checkups for all active age population
Introduction of a universal package to reduce Mother to Child HIV Transmission
Costs 0.27% of GDP b 2020
Near poor & Poor
Non-por Informal
Private sector
Civil serv
One third
One third
One third

7. Costing Exercise High Scenario: Costs 0.76% of GDP by 2020
Health care for all informal economy population, higher level of benefits based on WHO’s report of the Commission on Macroeconomics and health (USD 49, 2011 price)
Inclusion of HIV treatments and checkups for all the population
Introduction of a universal package to reduce Mother to Child HIV Transmission
Costs 0.76% of GDP by 2020
Near poor & Poor
Private sector
Civil serv
Formal Economy
One third
Informal economy
two third
One third

8. Universal coverage of BOS
Children
The “official” coverage
4.1 million very poor students receive scholarships
17% of the poor HH covered by PKH
Small child allowances for civil servants
PKSA
Universal coverage of BOS
Raskin
Near poor & Poor
Private sector
Civil serv
Formal Economy
One third
Informal economy
One third
two third

9. Universal coverage of BOS
Children
The “real” coverage
Raskin and Scholarships have targeting errors
scholarships
17% of the poor HH covered by PKH
Low family allowances for civil servants
PKSA
Universal coverage of BOS
Raskin
Near poor & Poor
Informal economy
Private sector
Civil serv

10. Children Gaps and Implementation Issues: Main recommendation
Limited coverage area of the PKH program
Insufficient supply of health and education services to ensure fulfillment of the PKH conditionalities
Lack of reliable data and efficient targeting mechanisms
Despite BOS allocation, schools still apply extra fees in practice
Unclear targeting mechanism of the Scholarship for the poor program
Main recommendation
Extend the coverage of the PKH and scholarship programs, and calculate the corresponding costs
Explore the possibility of introducing a universal child allowance, and calculate the corresponding cost
Increase availability of Schools and Health care services in remote areas
Develop more linkages between access to health, nutrition and education
Improve targeting and data collection under all programs
Reduce administrative costs of Raskin
Explore the merger of PKH and Scholarship program to avoid duplication

11. Universal coverage of BOS
Children
Low Scenario
Extension of the PKH program to all poor households (and not only the very poor households)
Will cost 0.05% of GDP by 2020
scholarships
Low family allowances for civil servants
PKSA
PKH
Universal coverage of BOS
Raskin
Near poor & Poor
Informal economy
Private sector
Civil serv

12. Universal child allowance
Children
High Scenario
Universal child allowance (400,000 IDR/year, 2011 price)
Will cost 0.2% of GDP by 2020
Universal child allowance
Near poor & Poor
Informal economy
Private sector
Civil serv
One third
One third
One third

13. Working Age Current coverage
If the legislation was enforced the total private sector would be covered
33% of private sector covered in
work injury, sickness& death
Jamsostek pilot program for informal
(injury & death): <1%
100% of the civil servants / police / military
Scattered interventions (Asekesos, PNPM, KUR, BLK, …)
Near poor & Poor
Private sector
Civil serv
Formal Economy
One third
Informal economy
two third
One third

14. Working age Coverage mandated by Law 40/2004: 100% Informal economy
Contribution paid by workers, in nominal amount
Contribution paid by workers & employers,
in % of salary
Informal economy
Formal Economy

15. Working Age Main Gaps and Implementation Issues
Almost no income security measures for informal economy workers and extension of the Jamsostek pilot scheme is very slow
Limited coverage of formal sector workers due to high evasion
Severance pay provides insufficient protection compared to unemployment insurance
Lack of harmonization of the maternity benefits for formal employees
Low coverage and low level of protection under the Askesos program
The provision of income security benefits is rarely linked with measures to increase employability, facilitate job creation or return to employment

16. Working Age Main Recommendation:
Improve enforcement of the Labor Law to reduce evasion (explore the TWIN system)
Feasibility study of an unemployment insurance scheme
Develop linkages between Public Employment Programs and skills development
Explore the possible introduction and calculate the cost of a maternity benefit for women in the informal economy
Design and pilot test a Single Window Service mechanism for workers in the informal economy that would :
Facilitate their registration and access to social protection and employment services
Assess their vulnerability and skills needs
Ensure proper monitoring and evaluation of existing programs
Enhance coordination between institutions and interventions

17. Minimum income security through integrated PWP & skills development
Working Age
Scenario
Establishment of a public works program linked with vocational training (30 days of work, minimum wage, vocational training)
Minimum income security through integrated PWP & skills development
Would cost 0.35% of GDP by 2020
Near poor & Poor
Private sector
Civil serv
Formal Economy
One third
Informal economy
two third
One third

18. < 1% of informal economy covered by Jamsostek pilot program
Old age and disability protection coverage
Allowance for elderly with no family support (1% of estimated need)
33% of private sector employees, Jamsostek saving
Severe disability allowance
100% of the civil servants / police / military: Pension and savings
< 1% of informal economy covered by Jamsostek pilot program
Nursing home subsidy
Near poor & Poor
Informal economy
Private sector
Civil serv
One third
One third
One third

19. Old age and disability
Law 40/2004: Old age saving for all workers and periodical pension for formal workers
Old age savings, contribution in nominal amount
Pension and old age savings, contributions in % of salary
Formal Economy
One third
Informal economy
two third
One third

20. Elderly and Disabled Main Gaps and Implementation Issues
Almost no income security provisions for the elderly in the informal economy
High evasion in the private formal sector
Old age lump sums do not provide adequate protection
The sustainability of the unfunded defined-benefit scheme for civil servants is questioned
The coverage of the non-contributory minimum pension program is limited
Lack of harmonized definition of disabled people (across Ministries, BPS, etc.)
Lack of comprehensive and comparable database with a clear classification of the disabled people

21. Elderly and Disabled Recommendations
Conduct a Feasibility study of a defined benefit pension scheme for formal sector workers
Explore the possible extension and calculate the cost of a non-contributory minimum pension scheme for the elderly and people with permanent disabilities
Create a comprehensive database of disabled people and elderly, to facilitate targeting
Increase the budget allocation to nursing and other charitable homes

22. Low Scenario:
Extension of existing non-contributory pension scheme for all severely disabled persons and all vulnerable elderly (i.e. without family support)
would cost 0.09% of GDP by 2020
Allowance for elderly with no family support
Severe disability allowance
Near poor & Poor
Informal economy
Private sector
Civil serv
One third
One third
One third

23. High scenario Universal pension at the level of poverty line
Would cost 0.95% of GDP by 2020
Near poor & Poor
Non-poor Informal
Private sector
Civil serv
One third
One third
One third

24. Thank you
Sinta Satriana