The Ombudsman of the Republic of Indonesia found three forms of maladministration in membership and social security services organized by the Social Security Administering Body (BPJS) for Employment. The Ombudsman of the Republic of Indonesia also conveyed a number of Corrective Actions that must be followed up by BPJS Employment within 30 days.

“Based on the results of the Ombudsman’s investigation, BPJS Employment was proven to be maladministration in the form of incompetent actions, procedural deviations and protracted delays in the implementation of membership services and social security,” said Member of the Indonesian Ombudsman, Hery Susanto at a press conference at the Ombudsman’s Office, South Jakarta on Wednesday (6/6)/7/2022).

Hery said that the form of incompetent maladministration carried out by BPJS Ketenagakerjaan, including the acquisition of Wage Recipients (PU) and Non-Wage Recipients (BPU) participation did not run optimally. In addition, Hery also stated that BPJS Ketenagakerjaan was not optimal in overseeing the implementation of Presidential Instruction Number 2 of 2021 concerning Optimizing the Implementation of the Employment Social Security Program.

“With the number of labor inspectors in the Indonesian Ministry of Manpower being very limited and only at the provincial level, this has resulted in weak supervision and handling of public complaints. In fact, this has resulted in the company’s low compliance in registering its workers to become BPJS Ketenagakerjaan participants. This problem must be resolved by improving related regulations. In addition to There must be an improvement in the quality of BPJS Employment HR in terms of participant recruitment and membership services,” added Hery.

Meanwhile, the forms of procedural deviations found by the Ombudsman of the Republic of Indonesia include the collective disbursement of claims through the company’s HRD, the difference in the determination of the retirement age between the company and BPJS Ketenagakerjaan, and efforts to harmonize regulations to optimize membership acquisition and benefit claim services have not been implemented. 

“Regarding collective claims, this can create gaps that can be exploited by individuals. Even though the membership relationship is between the two parties, namely between the BPJS Employment and the participants, the claim process should be carried out by both parties,” said Hery.

Meanwhile, the form of maladministration of protracted delays found by the Ombudsman of the Republic of Indonesia is the disbursement of benefit claims services which are still hampered. “Supervision and control of social security by the DJSN and the BPJS Employment Council are not running optimally. That the problem of disbursing benefit claims should be a concern for alternative suggestions and service improvements to BPJS Ketenagakerjaan,” explained Hery

The Ombudsman of the Republic of Indonesia provides a number of Corrective Actions that must be carried out by the President Director of BPJS Ketenagakerjaan as the reported party within the next 30 days. First, that the Director of BPJS Employment conduct socialization, coordination with related parties in the context of accelerating the acquisition of participation in the PU, BPU, non-ASN government employees and including the Affirmation Program for Contribution Assistance Recipients (PBI), by drawing up plans and stages of membership acquisition.

Second, to prepare a work organization structure and adequate human resources in terms of quality and quantity to support the implementation of programs mandated by regulations, including responding to demands for membership services and social security. Third, to coordinate with the government, business actors and workers in determining the retirement age limit so that relevant regulations and provisions are made regarding the age limit for Old Age Security beneficiaries. Lastly, the Ombudsman also requested that BPJS Kesejahteraan be consistent in using the name BPJS Employment according to the law.

In addition, the Ombudsman also provides Corrective Actions to the Coordinating Minister for Economic Affairs and the National Social Security Council (DJSN) as related parties. Among other things, for the Coordinating Minister for the Economy to plan and prepare government regulations related to the PBI program for workers with the status of people with social problems, in accordance with the mandate of Article 19 paragraph 5 letter d of Law 24 of 2011, to prepare plans for regulatory improvements, namely the revision of Article 5 of Government Regulation Number 44 2015 concerning the Implementation of the Work Accident Insurance and Death Benefit Program.

The Coordinating Minister for the Economy is also asked to make plans for improving regulations and/or proposing to the Indonesian House of Representatives to be carried out, namely the revision of Article 17 of Law Number 24 of 2011 concerning BPJS which regulates administrative sanctions for Business Actors who do not register workers with BPJS Employment, and revision of Article 55 which states that the Employer does not pay the contribution with the threat of a fine and imprisonment.

“Supposedly for violations in the form of not carrying out the obligation to register workers as BPJS participants, they should be given the equivalent sanctions in the form of fines and penalties,” said Hery.

To the Chairman of the DJSN, the Ombudsman requested that together with the BPJS Employment Supervisory Board make a study and advice to the BPJS Employment Directors for the effectiveness of supervision in terms of payment compliance by the employer. Then, together with the Supervisory Board of BPJS Employment, formulate advice and policy directions to BPJS Employment in terms of service for disbursing benefits claims by BPJS Employment, so that the process and procedures for providing social security are carried out quickly and accountably.