The Indonesian government has issued a new policy aimed at improving the social protection of Indonesian migrant workers. The new regulation provides additional social security benefits to enhance protection and services for migrant workers from social risks.
The new policy is published by The Indonesian Minister of Manpower, Ida Fauziyah, embodied in Ministerial Regulation No. 4 of 2023 on Social Security for Indonesian Migrant Workers, which was enacted on February 21, 2023, and published on February 22, 2023.
This policy replaces Ministerial Regulation No. 18 of 2018 on Social Security for Indonesian Migrant Workers, which was deemed no longer suitable to meet the evolving legal and regulatory requirements.
According to Ida Fauziyah, the new regulation provides additional social security benefits to enhance protection and services for migrant workers from social risks arising from work accidents, death, and old age.
In her statement on Friday, March 3, 2023, she said, “The issuance of this regulation is a manifestation of the state’s presence for our migrant worker friends, where contributions remain fixed, but benefits increase.”
The amount of the contributions for Work Accident Insurance (JKK) and Death Insurance (JKM) remains fixed at IDR 370,000 per 24-month employment contract, with no increase.
The contribution breakdown is IDR 37,500 before starting work, while the contribution during and after work is IDR 108,000 for 6 months, IDR 189,000 for 12 months, and IDR 332,500 for 24 months. The contribution for contract extension or excess period is IDR 13,500 per month.
Similarly, the amount of the Old-Age Benefit (JHT) contributions remains fixed according to the choice of Indonesian Migrant Workers, between IDR 50,000 and IDR 600,000.
The new policy expands the social security program to cover 21 risks compared to 14 risks under the previous policy.
The benefits of the Work Accident Insurance program before, during, and after work include healthcare services, cash benefits, counseling, and vocational training for Indonesian Migrant Workers who suffer from partial anatomical or functional disabilities due to work accidents.
The Death Insurance program benefits include death benefits, periodic benefits, burial expenses, and educational or training scholarships provided for protection during work.
In addition, the new policy also introduces new social security programs, such as cash assistance to Indonesian Migrant Workers who suffer from physical violence and rape, cash assistance, and reimbursement of ticket costs to workers who are placed in positions that do not match the placement agreement, cash assistance to workers who are unilaterally terminated, and reimbursement of medical expenses resulting from work accidents in the destination country, up to a maximum of IDR 50,000,000.
The issuance of Ministerial Regulation No. 4 of 2023 aims to provide comprehensive social security protection for Indonesian Migrant Workers, before, during, and after their employment.
