Indonesia Reinforces Social Protection with Enhanced Job-Loss Insurance

Indonesian workers gathered in Hong Kong. (Flying Toasters/Wikimedia)

On July 1, Indonesia’s Ministry of Manpower reiterated its commitment to strengthening protection for employees, with a particular emphasis on enhancing the Job-Loss Insurance (JKP) programme for workers affected by redundancy.

Anwar Sanusi, Head of the Ministry’s Development and Planning Agency, said the government continues to refine the scheme to ensure it provides meaningful support for individuals who have  lost their jobs. He described JKP as a key pillar of Indonesia’s social protection system, helping workers maintain financial stability while seeking new employment.

Under the programme, eligible beneficiaries can receive cash assistance equivalent to 60% of their wages for up to six months, in accordance with prevailing regulations. In addition to financial support, participants are given access to career counselling, labour market information and job placement services designed to improve their chances of returning to work.

He noted that the programme extends beyond temporary income relief by helping workers strengthen their employability. Through reskilling and upskilling initiatives, beneficiaries can develop new competencies that better match labour market demands. They are also supported with guidance on available vacancies and recruitment opportunities, making the transition back into employment more effective.

To maximise the scheme’s impact, the ministry is encouraging workers to understand the eligibility requirements and enrol where applicable. JKP is available to Indonesian citizens who are wage earners, under the age of 54 at the time of registration, and registered with the national health insurance scheme administered by the Health Social Security (BPJS Kesehatan)

Coverage requirements under the Work Social Security Agency (BPJS Ketenagakerjaan) vary according to the size of the employer. Employees of micro and small enterprises must be enrolled in occupational accident, death and old-age insurance programmes, while those working for medium and large companies are additionally required to participate in the national pension scheme in order to qualify for JKP benefits.

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