Indonesia and Germany Collaborate on Comprehensive Social Security Reform
JAKARTA, RAKYAT NEWS – Indonesia’s Ministry of National Development Planning (Bappenas) and GIZ Indonesia have partnered to conduct strategic studies on the country’s social security reform. The collaboration aims to improve the inclusivity, efficiency, and sustainability of Indonesia’s National Social Security System (SJSN).
These efforts are part of ongoing work to prepare for the upcoming 2025-2029 National Medium-Term Development Plan (RPJMN) and to address the challenges facing social security programs in the country.
A key focus of the studies is to address the demographic changes and gaps in access to social security. The research will offer data-driven insights to support reforms that can adapt to Indonesia’s changing population structure, such as the increasing elderly population. Additionally, the studies aim to bridge the gaps in social security services, particularly for vulnerable groups, including informal workers, the poor, and people with disabilities.
The strategic studies, which include nine comprehensive analyses, will cover several important areas. These include demographic situation analysis, social protection gaps, and the willingness and ability of the population to contribute to social security funds. Other aspects under review are the financial sustainability of the Employment Social Security Fund (JKK), Death Benefit (JKM), and Unemployment Insurance (JKP), as well as an evaluation of Indonesia’s current social security regulations.
The research also seeks to improve the actuarial models used for these social security programs, which will help ensure that the benefits provided align with the financial resources available. The studies will also review the regulations related to social security and provide recommendations for harmonizing and strengthening policies related to the Social Security Administering Agency (DJSN).
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