Disarray over Workers’ Pensions
Apparently, President Joko Widodo has asked the manpower ministry to revise Regulation No. 22/2022 on the administration and conditions for payouts of old-age benefits (JHT). As announced by State Secretary Pratikno on February 21, Jokowi asked Manpower Minister Ida Fauziyah to make payouts of JHT funds easier.
In this regulation, JHT funds can only be paid to participants when they reach 56 years of age. This provision triggered demonstrations of workers over the last two weeks. Social media has been flooded with posts questioning and protesting about this policy. The official manpower ministry account has been painstakingly responding with number of excuses about the importance of this regulation.
We chose this topic for our cover story published on February 21 because there is a huge question over the JHT uproar that has not been answered: what is the point of workers having such huge funds if the government holds onto them? Why is the government determined to withhold the money of the people who have been working their fingers to the bone only not to be able to cash in their savings?
It turns out that there have long been problems with the management of these social security funds for workers. We began to unravel them by taking another look at Law No. 93/1992 on the workers social security program. Then we analyzed the financial reports of the Workers Social Security Agency (BP Jamsostek).
The figures in these reports showed how the JHT funds have provided the main source of income and investment for BP Jamsostek. The program has turned BP Jamsostek into one of the largest local investors, particularly in government’s bonds.
Conversely, requests for payouts of JHT benefits from participants are also on the rise because of the large number of workers making claims after losing their jobs during the Covid-19 pandemic—an option now removed under the new regulation. Is it true that these workers’ funds have been used to cover shortfalls in the state budget caused by the pandemic and to pay for lighthouse projects?
Stay well and enjoy the magazine.
Agoeng Wijaya
Executive Editor
Workers’ Funds for Who?
The government is holding onto workers’ old-age benefits. Workers can only access their savings when they reach the age of 56. Who is the money for?
Between Life and Old Age
The new regulation is seen as unfair to workers. What are they worried about?
Taking Risks at a Time of Uncertainty
How does BP Jamsostek manage the JHT funds? Where does it invest them?
Interview with BP Jamsostek’s Chief Executive Officer
An explanation from the CEO of BP Jamsostek. Is it true that workers’ funds are deposited safely and invested properly?
