Employment Accident Insurance in Indonesia“New Phenomenon of Online Motorcycle-Taxi Drivers”

AGUS SUSANTO

President Director

ISSA-BMAS-OECD Conference Berlin, 12 June 2017

INDONESIA AT A GLANCE

Demography and Geography Highlight

3Resources : National Statistic Bureau, 2016

The Republic of Indonesia

Population : 257,9 million

Workforce : 125,4 million (60% informal sector)

Unemployment rate : 5,61% (7,9 million)

People live in urban area

: 53%

Demography

Regional : Southeast Asia

Archipelago : 18,108 islands (with 5 big islands Sumatera, Java, Borneo, Sulawesi and Papua)

People live on : 6.000 islands

Geography

4Resources : National Statistic Bureau, 2016

4,80 4,80

5,005,10

2014 2015 2016 2017f

ECONOMIC GROWTH

+1,2%Economic growth in 2015 increased significantly and will continue the trend in 2017.

-0,2%GINI Ratio in 2016 declined about 0,2 basis points and predicted level off to 0,38 in 2017.

0,41 0,41

0,390,38

2014 2015 2016 2017f

GINI RATIO

Economic growth which followed by declining inequalities have triggered a new economic

wave. Digital economy arised and spread rapidly, i.e online public transportation.

3.570

3.703

3.834 3.900

2014 2015 2016 Q2 2017

+66GDP Percapita increased accounting to USD 3.834 in 2016.

GDP PER CAPITA

BB+INVESTMENT GRADE 2017

(S&P Global Ratings)

BBB

2016 As of May 2017

Sovereign credit rating

EASE OF DOING BUSINESS RANK

Economic Highlight

Social Security Highlight

5

+

Image : http://combiboilersleeds.com/

Equality creates all citizens getting same treatment.

Equity obtains what is needed to improve the quality of life, i.e redistribution, subsidized, and grant.

AVOID SOCIAL CONFLICT =

Social Security Reform in Indonesia (Law No. 40/2004 and Law No. 24/2011)

Protection for all

workers in Indonesia

Health protection for all

citizens of Indonesia.

Equitable policy reforms social security implementation in Indonesia since 2014.

Difficult-to-Covered Groups

6

Economic distribution leaves a vulnerable group to be protected. They are a worker,

but to pay social security contribution is not priority.

Fishermans

Motorcycle-Taxi Drivers

Farmers

Porters

Constructions Labors

Image : google.com

MOBILIZATION, PUBLIC

TRANSPORTATION, AND

COMMUTE ACCIDENT

Commuting and Traffic in Indonesia

8Image : google.com

What will you do in this situation?

One of the fastest way to dodge gridlock is to jump on motorcycle-taxi.

Traffic Accidentin Jakarta 2010 to 2014

9Source : Transportation statistic in Jakarta, 2015

8.235 8.079 8.020

6.498 6.574

1.048 1.008 912 676 605 347

2.820 2.938 2.925 3.088

5.820 6.312 6.153

4.711

568

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2010 2011 2012 2013 2014

Accident Case Death Severe Injury Minor Injury

17.744 18.102

21.885

23.794 23.149

-

5.000

10.000

15.000

20.000

25.000

2010 2011 2012 2013 2014

Number of Traffic Accident Case and the Impact Material Loss (In millions IDR)

Based on the data above, average traffic accident cases in a day were 21 cases. Two of them died, 7

cases are severely injured and and 13 cases are minor injuries. Material losses borne by the victims

amounting for IDR 2 millions in average.

New Phenomenon on Public Transportation

10Image : google.com

Recently, public online transportation

generates waves of change to the

economy and people behaviour.

Online public transportation has transformed the way people live, work and communicate

11Image : google.com

GO-JEK – Motorcycle Taxi Booking App

Go-Jek is a transportation company which provides

transportation services ranging from motorbike taxi fleet

to courier service. The company was founded in 2011.

1. People Mobilization

2. Courier or Delivery

3. Services

1. GO-JEK is trying to solve one of the biggest headache in Indonesia – traffic congestion.

2. GO-JEK is creating employment of the country.

3. GO-JEK is not only about ride-sharing. They provide a wide range of delivery, not only of goods (food,

parcel, medicine, movie tickets) but also services (cleaning, massage, hair styling, nail care, auto repair).

GO-JEK exposed Socio-economic Risks

12Image : google.com

Inspite of online transportation growth rapidly, there

are socio-economic risks against online

transportation ecosystem.

Let’s see

Wiwin’s story

How We Approach Them?

13

RegisterRp

Pay Info

INDIVIDUALLY COMMUNITY

BASED

Whatsapp

GroupLine

Group

Smart Kiosk

BPU Online

GN LINGKARAN(donation mecanism)

Intermediary Agent

(PERISAI)

GN LingkaranA voluntary scheme of national movement of crowdfunding

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A movement to mobilize nation solidarity that addressed to assist social security

membership contribution for vulnerable Workers through donation.

BankBranch

Donations is given directly by

Donors through electronic system

developed by BPJS

Ketenagakerjaan.

The donor is encouraged to

choose the beneficiary

voluntarily.

The donations is temporary.

The workers expected to

continue the membership

contribution by themselves in

the future.

Allocated for three programs as

follows:

Provident Fund,

Employment Injury

Death Benefits

How to

donate?

The target

Resources of funds

:

Recipients / Beneficiary :

Rp

Rp

RpRp

1. Government institution

2. Private institution - Corporate Social

Responsibility (CSR)

3. Religious Organization

4. Community Donations

5. Individual Donations

6. Employers

1. Vulnerable Informal Workers

2. Domestic workers

3. Certain Community Groups

GN Lingkaran can be an alternative resource to fund social security.

Intermediary Agent (PERISAI)

15

Social Security Experts

BPJS Ketenagakerjaan(Social Security Administering Body for

Employment)

Union, Industrial Association, etc.

Education Socialization Acquisition Collection

Intermediary Agent (Perisai)

Medium Small Micro Informal

Target Membership

Compensation Payment

Cooperation

EMPLOYMENT ACCIDENT BENEFITS

FOR GO-JEK

BPJS Ketenagakerjaan

Employment Accident Benefits

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a. Formal Workers (including foreign worker)

0,24% – 1,74% (depends to the business

type).

b. Informal workers

1% from reported wages

Contribution

a. Unlimited Medical Treatment

b. Money Compensation

c. Scholarship for the children, (only for those

who died or permanently disable after working

injury incident. The children of the worker will

received IDR 12.000.000,00 (twelve million idr).

d. Return to Work

Benefits

Image designed by freepik.com

Additional Benefits

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HOUSING BENEFITS

To facilitate the members to obtain a decent home, healthy and affordable.

SPECIAL PRICE / DISCOUNT

Built as a daily benefits to the members. Special price / discounts

are designed to reduce living cost by giving varying discount in

the purchase of daily goods or services. Now, BPJS

Ketenagakerjaan already cooperated with over 400 merchants.

SCHOLARSHIP (BEING PROPOSED)

Provide scholarships for children from primary school up to

university level. The scholarship eligibles for two childrens with

maximum aged 23 year once the workers died or permanent

disabilities.

Coordination of BenefitTo Anticipate case of Street Accidents

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Accident

Work related

Not work

related

In traffic Not in traffic

1st guarantor2nd guarantor

Jasa Raharja

is the Indonesian Transportation Insurance Company

BPJS Kesehatan

(Social Security Administering Body for Health)

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As a bridge towardsworkers’ welfare

https://unsplash.imgix.net/26/city-scape.jpg?q=75&fm=jpg&s=7f3f4c218dc80e2717330526760c938f

Thank You

“Social security is not just an ideology but an inherent lifestyle” (Agus Susanto)

Gedung BPJS Ketenagakerjaan

Jl. Jend. Gatot Subroto No. 79

Jakarta Selatan – 12930

T (021) 520 7797

F (021) 520 2310

www.bpjsketenagakerjaan.go.id