Overview The Indonesian government has established the Social Security Administration Board (Badan Penyelenggara Jaminan Sosial or “BPJS”) which consists of BPJS Healthcare and BPJS Employment, to form social protection ensuring that all people meet their basic needs (“Social Security”). This is mandated by Section 3 of the Social Security Administration Board Act No. 24 of 2011 as amended by the Employment Creation Act No. 11 of 2020 (“Law No. 24/2011”).
On January 6, 2022, the President of the Republic of Indonesia issued Presidential Instruction No. 11 of 2022 on Optimizing the Implementation of the National Health Insurance Program (“Presidential instruction 11/2022”) which instructed 30 (thirty) ministries and institutions to increase participation in BPJS Healthcare.
BPJS Healthcare guarantees health care at all levels of society
Health care is security in the form of health protection so that participants obtain health care benefits and protection to meet basic health needs which is granted to all who have paid the health security contribution or the health security contribution paid by the central government or the local government ( “Health care”).1
Essentially, every Indonesian citizen is required to participate in health security. 2 This is a consideration for the implementation of BPJS Healthcare’s active participation requirements for access to several public services.
Through this active participation, all levels of society, from the upper class to the lower class, are able to obtain appropriate health services in accordance with government objectives. Moreover, it is also the implementation of the principle of solidarity (gotong royong) adopted by the social security system itself.3
BPJS Healthcare as a condition of access to public services
In its development towards the implementation of Presidential Instruction 11/2022, the implementing regulations have not yet been issued. However, in practice, the BPJS Healthcare requirement has been enforced in several legal jurisdictions, including the issuance of business licenses through the online single submission system.
The application for registration of the transfer of land rights also requires a copy of the BPJS health card as indicated in the letter from the Minister of Agrarian Affairs and Spatial Planning / National Land Agency No. HR.02/153-400 /II/2022 . In addition, the requirement of BPJS Healthcare includes the registration of intellectual property rights through the Ministry of Law and Human Rights, as well as the administration of a driving license (Surat Izin Mengemudi ), a vehicle registration certificate (Surah Tanda Nomor Kendaraan), and criminal record certificate (Surah Keterangan Catatan Kepolisian).
Not only limited to Indonesian citizens, foreign citizens (Warga Negara Asing) can also utilize the healthcare services provided by BPJS Healthcare. This is based on Article 14 of Law 24/2011 provided that the foreigner concerned has lived or worked for at least 6 (six) months in Indonesia.
In addition to individual participants, business entities are required to register their employees as BPJS Healthcare participants.4 Business entities that do not apply it will be subject to administrative sanctions in the form of written warnings, fines and/or not receiving certain public services.5 The contribution to the participation of the business entity is 5% (five percent) of salary or wages per month with an allowance of 4% (four percent) paid by the employer and 1% (one percent ) paid by the employee. 6
Elimination of the BPJS healthcare class
Previously, BPJS Healthcare divided its services into 3 (three) classes with different rates each month:
1. Class I: Rp 150,000.00 per person;
2. Class II: Rp100,000.00 per person; and
3. Class III: Rp35,000.00 per person.
In 2022, the government plans to remove the division by class and replace it with a single class. This policy aims to provide the same health services to all participants. This improvement is carried out in stages to optimize social security services, in particular health care, as required by Law 40/2004.