Indonesia’s National Social Security System (SJSN) is entering a pivotal stage as the Ministry of National Development Planning/National Development Planning Board (PPN/Bappenas) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Indonesia collaborate to address the system’s complex challenges of demographic shifts and sustainability of program funding.
Since 1975, the GIZ GmbH has been working in Indonesia, member of G20 – the Group of Twenty of the world’s major industrial and emerging economies – which plays a significant role in the Asia-Pacific region.
Indonesia is one of the global development partners of the German Federal Ministry for Economic Cooperation and Development (BMZ).
GIZ is working in Indonesia on behalf of BMZ. Other parties that commission GIZ to carry out projects include the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), the German Federal Foreign Office and the European Union.
The partnership has resulted in nine data-driven strategic studies, designed to enhance the initial draft of the 2025–2029 National Medium-Term Development Plan (RPJMN) and support Indonesia’s agenda for social security reform.
“Social security reform is a strategic step toward expanding program coverage to be more inclusive, efficient, and sustainable,” Muhammad Cholifihani, Director of Population and Social Security at PPN/Bappenas, said on Wednesday, December 17, 2024.
The nine strategic studies
The studies analyze several critical aspects of the SJSN:
- Demographic changes and social protection;
- Gaps in social security programs;
- Public capacity to pay contributions;
- Projections for social security funding adequacy;
- Actuarial models for work accident insurance (JKK), death benefits (JKM), and unemployment benefits (JKP);
- Review of Presidential Regulation No. 36/2023;
- Division of responsibilities in program implementation;
- Strengthening regulations related to the National Social Security Council (DJSN);
- Institutional transformation and regulatory harmonization for SJSN.
Makhdonal Anwar, Commission Manager for the Social Protection Program at GIZ Indonesia, emphasized the importance of these studies in building a sustainable social welfare system.
Achievements
Since its inception in 2014, the National Health Insurance (JKN) program, managed by BPJS Kesehatan, has achieved several milestones, including:
- Jamkesda (Regional health insurance) Integration (2016): Local health insurance schemes were unified under a national system to ensure equal benefits nationwide;
- Digital Innovation (2018): Online registration, mobile applications, and digital payment options improved access to JKN (National health insurance) services;
- Expanded Coverage (2024): By September 2024, JKN reached 98.42 percent of Indonesia’s population.
Challenges
Despite significant progress, SJSN faces critical challenges: Demographic Changes:
- A growing elderly population requires a more comprehensive system;
- Access Inequality: Vulnerable groups, such as informal workers and low-income families, still struggle to access benefits;
- Sustainability: Balancing public contributions with program benefits is essential to maintaining funding adequacy.
Bappenas and GIZ Indonesia aim to use the insights from these studies as a foundation for policy reforms that will make social security in Indonesia more inclusive and adaptive. The recommendations are expected to ensure long-term sustainability and widespread benefits for the Indonesian people.
