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).

The findings of these studies were presented at a forum held on December 18, 2024. The dissemination of the studies marks the culmination of Germany’s ongoing support for Indonesia in the area of social security reform. The insights generated are expected to serve as a crucial foundation for the development of policies aimed at enhancing the country’s social security framework.

Makhdonal Anwar, Commission Manager of the Social Protection Program at GIZ Indonesia, emphasized that the goal of these studies is to create a sustainable and inclusive social security system that will benefit all Indonesians. He stressed that the recommendations emerging from the studies should contribute to enhancing social welfare, ensuring equitable benefits for the population, and securing long-term sustainability.

Over the last decade, Indonesia has made significant strides in developing its National Social Security System. The implementation of the National Health Insurance (JKN) program, managed by BPJS Kesehatan, has been one of the country’s key achievements. Launched in 2014, JKN has progressively expanded its coverage and access to healthcare services, contributing to improved national health outcomes.

Despite these successes, Indonesia faces several challenges in reforming its social security system. One of the main issues is the demographic shift, particularly the growing elderly population, which will require a more comprehensive social security system in the future. Additionally, there remains inequality in access to social benefits, especially for informal workers and marginalized groups. Addressing these issues will be vital in ensuring the continued success and sustainability of Indonesia’s social security programs. (Uki Ruknuddin)

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