Indonesia: Compliance: Healthcare: Indonesia’s Universal Social Security’s Housing and Healthcare Programs

Indonesia: Compliance: Healthcare: Indonesia’s Universal Social Security’s Housing and Healthcare ProgramsEnrollment deadline: Employees January 1,2015; all other citizens January 1, 2019

One goal of the Indonesian government is to have a universal social security system in place to cover all Indonesian citizens, not just employees. This includes home ownership and healthcare. To do this the Indonesian government established BPJS – the National Social Security Agency – which is in charge of administering social security matters in Indonesia. Based on Law No. 24 of 2011, all employees in Indonesia were required to register with BPJS by January 1, 2015. Everyone else must register by January 1, 2019.

National Manpower Security Agency (BPJS Ketenagakerjaan), formerly PT Jamsostek (Persero)

This agency now offers home financing including:

  • Cash advance loans for down payments or rental deposits.

  • Mortgages

  • Home Renovation Loans

A worker’s housing loan, funded through Indonesia’s Old Age Savings fund, is slso available. It’s a program run by Manpower, but is financially managed through the state owned lending bank, Chanel Bank (Bank Tabungan Negara).

These are the steps an employee would take to secure a housing loan.

  • The employee brings their identification and BPJS membership information to the bank.
  • For now, they need to use Bank Tabungan Negara (BTN) to secure the loan. More banks will be added to the agency’s approved list soon.
  • The bank will use the documents provided to verify all the information, and do a credit check or “BI Checking” with the central bank of Indonesia called Bank of Indonesia.
  • When the applicant satisfies all the requirements for the loan, the bank automatically passes the completed, necessary documents to the housing agency.
  • When everything is in order the bank will provide the necessary, completed documents to the housing agency for further processing.

The government subsidizes the loan based on an employee’s income. The maximum financing for employees in the lowest income bracket is 99% of a home’s cost. Middle-income employees can get a maximum of 95% financing for their home. Also, interest rates do not change throughout the life of the loan.

Companies participating in the Persero housing programs will have their employees’ memberships automatically transferred to BPJS Ketenagakerjaan. The current law does not provide an exclusion for expatriate employees. Becasue of this, employers are encouraged to register their expatriate employees with the National Manpower Security Scheme, even if they remain covered by similar schemes overseas.

National Healthcare Security Agency (BPJS Kesehatan) formerly PT Askes (Persero)
The new Mandatory Health Insurance Scheme (JKN), managed by Badan Penyelenggara Jaminan Social (BPJS), Indonesia’s Social Security Organizing Body, was introduced January 2014. All citizens should be universally covered by January 1, 2019.

JKN covers medical and non-medical benefits but excludes esthetics, orthodontics, infertility treatments, drug rehabilitation programmed and claims related to extreme hobbies, and services performed overseas. This scheme is mandatory for all Indonesian citizens and residents, including those who are covered by other health insurance programs. Compared to private health insurance in Indonesia, BPJS does not impose caps on medical and non- medical benefits covered.

Many thanks to our Indonesian Partner, Integra, provided this legislative update. If you need assistance with employee benefits in Indonesia, Integra is ready to help.