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RI prepares mechanism for providing unemployment benefits

Jakarta Post | February 14, 2018
 The Islamic Chamber of Commerce , Industry and Agriculture (ICCIA)

The government and the Workers Social Security Agency (BPJS Ketenagakerjaan) are now preparing a mechanism for providing unemployed citizens with benefits, said Manpower Ministry training and productivity supervision director general Bambang Satrio Lelono in Jakarta on Monday.

“We encourage BPJS Ketenagakerjaan to prepare the draft because more than 70 countries already have a mechanism for granting unemployment benefits,” said Bambang as reported by kontan.co.

Bambang said one of the items that was being discussed was about the source of funds – dues collection – for the unemployment benefits.

Currently, there are four kinds of dues currently being managed by BPJS Ketenegakerjaan – dues for elderly funds, work accident funds, death funds and pension funds.

“We are still discussing the issues, whether we need another due or to split the existing four into five,” he said, adding that it was a complex issue because any changes needed be followed up with a revision to prevailing regulations.

Bambang added that collecting additional dues for unemployment benefits might face strong opposition from related parties.

Unemployment benefits in the form of funds and vocational training would be granted to employees who lost their jobs, he said.

“Those who lost their jobs need to relearn skills and develop skills [...] so that they can get new jobs as well as funds for their family members,” he said, adding that the government would also allocate skill development funds (SDF) for unemployed people.