PRESIDENT OF THE REPUBLIC OF INDONESIA REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA NUMBER 109 OF 2013 CONCERNING THE GRADUAL STAGES OF SOCIAL SECURITY PROGRAM PARTICIPATION BY THE GRACE OF ALMIGHTY GOD PRESIDENT OF THE REPUBLIC OF INDONESIA, Considering : whereas in order to implement the provision of Article 13 paragraph (2) of Law Number 40 of 2004 on National Social Security System and Article 15 paragraph (3) of Law Number 24 of 2011 on Social Security Administrative Body, it is necessary to stipulate the Presidential Regulation on Gradual Stages of Social Security Service Program Participation; In view of : 1. Article 4 paragraph (1) of the 1945 Constitution; 2. Law Number 40 of 2004 on National Social Security System (State Gazette 1
of the Republic of Indonesia of 2004 Number 150, Supplement to the State Gazette of the Republic of Indonesia Number 4456); 3. Law Number 24 of 2011 on Social Security Administrative Body (State Gazette of the Republic of Indonesia of 2011 Number 116, Supplement to the State Gazette of the Republic of Indonesia Number 5256); DECIDED: To stipulate : PRESIDENTIAL REGULATION ON GRADUAL STAGES OF SOCIAL SECURITY PROGRAM PARTICIPATION CHAPTER I GENERAL PROVISIONS Article 1 In this Presidential Regulation the meaning of: 1. Social Security is one of social protection to secure all people to be able to fulfill their basic life needs decency. 2
2. Social Security Administrative Body Employment, hereinafter abbreviated as BPJS Employment is a corporation established to administer work accident security, old-age security, pension security, and death security. 3. Participant is anyone, including expatriate who has worked for at least 6 (six) months in Indonesia, who has paid contributions. 4. Gradual Stages of Participation is the stages done by the employer to register himself and his employees as participant pursuant to social security program being followed to BPJS Employment. 5. Employer is an individual, entrepreneur, legal entity, or other entity employing workers or state agencies employing civil servants that provide salary, wage, or other forms of remuneration. 6. State Organizer is a state official having executive, legislative, or 3
judicative function, and other official whose function and primary task related to state organization pursuant to applicable regulations of law. 7. Enterpriser is: a. Any individual, partnership, or corporation running privately owned company; b. Any individual, partnership, or corporation running other company independently; c. Any person, partnership, or corporation in Indonesia, representing company as meant in letter a and letter b domiciles outside the territory of Indonesia. 8. Company is: a. Any business entity, incorporated or not, owned by individual, owned by partnership, or owned by 4
corporation, private-owned or state - owned, employing workers / labors by paying wages or other forms of remuneration; and b. Social and other businesses with management and employing other people by paying wages or other forms of remuneration. 9. Employee is anyone who works and earns salary, wage or other forms of remuneration. 10. Micro Enterprise is a productive business owned by individual person and/or individual enterprise qualified as micro enterprise as set out in Law on Micro, Small, and Medium Enterprise. 11. Small Enterprise is an independent productive economy business, run by individual person or enterprise not constituting subsidiary or branch of 5
the company owned, controlled, or form a part of, directly or indirectly, medium or large enterprise qualified as small enterprise as set out in the applicable regulations of law. 12. Medium Enterprise is an independent productive economy business, run by individual person or enterprise not constituting subsidiary or branch of the company owned, controlled, or form a part of, directly or indirectly, small or large enterprise with the total net assets or annual sales as set out in the applicable regulations of law. 13. Large Enterprise is an independent productive economy business, run by enterprise with the total net assets or annual sales bigger than medium enterprise, comprising of state or private owned national business, joint venture, and foreign enterprise running economic 6
activities in Indonesia as set out in the applicable regulations of law. 14. Minister is the minister dealing with employment affairs. Article 2 (1) Any employer and employee shall be entitled for social security. (2) The social security as meant in paragraph (1) shall consist of: a. Health security; b. Work accident security; c. Old-age security; d. Pension security; and e. Death security. (3) The health security as meant in paragraph (2) letter a shall be administered by BPJS Health as set out in separate Presidential Regulation. 7
(4) The social security as meant in paragraph (2) letter b, letter c, letter d, and letter e shall be administered by BPJS Employment. CHAPTER II GRADUAL STAGES OF PARTICIPATION Part One General Article 3 The participation of social security program as meant in Article 2 paragraph (4) shall consist of: a. Waged participants; and b. Non-waged participants. Part Two Waged Participants Article 4 The waged participants as meant in Article 3 letter a shall consist of: 8
a. Employees employed by state organizer employers; and b. Employees employed by employers other than state organizers. Article 5 (1) Employees employed by state organizer employers shall consist of: a. Potential civil servants; b. Civil servants; c. Members of TNI; d. Members of POLRI; e. State officers; f. Non-civil servant governmental employees; g. TNI cadets; and h. POLRI trainees. (2) The state organizer employers shall register their employees as meant in paragraph (1) in work accident security, old-age security, pension security, and death security 9
programs gradually to BPJS Employment. (3) The gradual stages of registration of employees employed by state organizer employers as meant in paragraph (1) shall be for work accident and death accident no later than 1 July 2015. (4) The gradual stages of registration of employees employed by state organizer employers as meant in paragraph (1) letter a and letter shall be for old-age security and pension security no later in 2029. Article 6 (1) The gradual stages of participation for employees employed by employers other than state organizers shall be classified under the business scale as follows: a. Large enterprise; b. Medium enterprise; c. Small enterprise; and 10
d. Micro enterprise. (2) The employers other than state organizers pursuant to business scale as meant in paragraph (1) since 1 July 2015 shall be obliged to register their employees with BPJS Employment to participate in work accident security, old-age security, pension security, and death security programs in gradual stages. (3) The gradual stages as meant in paragraph (2) for: a. Large and medium enterprise shall participate in work accident security, old-age security, pension security, and death security programs. b. Small enterprise shall participate in work accident security, old-age security, and death security programs. 11
c. Micro enterprise shall participate in work accident security and death security programs. (4) In the event that business scale as meant in paragraph (1) shall run business in field of construction works employing daily freelance, contract, or seasonal workers shall register their workers in work accident security and death security programs. (5) The procedure of workers registration as meant in paragraph (4) shall be regulated by Ministerial Regulation. Part Three Non-Waged Participants Article 7 The non-waged participants as meant in Article 3 letter b shall consist of: a. Employers; 12
b. Employees beyond working relationship or independent employees; and c. Employees excluded in letter b not receiving salary or wage. Article 8 (1) Employers as meant in Article 7 letter a may in addition to mandatorily participate in work accident security, old-age security, and death security programs no later than 1 July 2015, participate in pension security program. (2) Employees as meant in Article 7 letter b and letter c may in addition to mandatorily participate in work accident security and death security programs no later than 1 July 2015, participate in old-age security and pension security programs. 13
CHAPTER III MISCELLANEOUS PROVISIONS Article 9 For the company registering its employees in employment social security program pursuant to law Number 3 of 1992 on Employment Social Security shall not be allowed to cut down employment social security program already followed. CHAPTER IV CLOSING PROVISION Article 10 This Presidential Regulation shall be effective as of enactment date In order for everyone to see, the enactment of this Presidential Regulation shall be published in the State Gazette of the Republic of Indonesia. 14
Enacted in Jakarta On 27 December 2013 PRESIDENT OF THE REPUBLIC OF INDONESIA, Signature DR. H. SUSILO BAMBANG YUDHOYONO Enacted in Jakarta On 27 December 2013 MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA, Signature AMIR SYAMSUDIN STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2013 NUMBER 253 Copy conformed to the original, SECRETARY CABINET OF THE RI Deputy of Social Welfare Division Signature Siswanto Roesyidi This birth certificate is translated from Indonesian into English by Renati Adriani (Authorized/Sworn Translator by the Greater Jakarta Governor s Certificate of Appointment # SK.GUB.KDKI No. 1820/1999) 15