Understanding mandatory healthcare & social security BPJS in Indonesia.

This is a fundamental guide of the mandatory healthcare and social security BPJS in Indonesia.

Residents and non-residents who have lived in Indonesia for more than six months are required to register for the healthcare program (BPJS Kesehatan) and social security scheme (BPJS Ketenagakerjaan).

Let’s learn more.

Healthcare program in Indonesia

What is the healthcare program?

The BPJS healthcare program (BJPS Kesehatan) is a type of national insurance that all residents of Indonesia should have.

It provides three types of healthcare services to its members, which are:

• Basic healthcare services
• Advanced healthcare services
• Hospitalisation services

Healthcare program contribution for employees

The healthcare program contribution rate for employees is:

The maximum wage for calculating the healthcare program contribution is IDR 12 million. Even if the employee’s wage is more than IDR 12 million, the employer and employee will contribute IDR 480,000 and IDR 120,000.

The healthcare program contribution covers a maximum of five members: the employee, spouse, and three children, including step-children.

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When are contribution payments due?

Contributions are due on the 10th of every month and the following business day if the 10th falls on a weekend or public holiday.

Healthcare program premiums for non-employees or self-employed individuals

There are three classes of premiums for non-employees or self-employed members which are:

• Class 1 – IDR 150,000 per month
• Class 2 – IDR 100,000 per month
• Class 3 – IDR 35,000 per month

The government will contribute an additional IDR 7,000 for members paying the Class 3 premium.

How to register healthcare for a company?

Registration for BPJS Kesehatan can be made either online or offline. However, due to the Covid-19 pandemic, it is easier to register online as every visit to the healthcare program office is restricted.

The steps for online registration are the following:

1. Fill in the registration form – signed by the director on stamp duty IDR.10,000 and company stamp.
2. Prepare the supporting documents, such as:

• Business License (SIUP) / Business Identification Number (NIB) / BKPM / SIUPAL / IUD
• Company Domicile / TDP
• Company National Tax ID (NPWP)
• Letter of Attorney of the Edabu user − from the director to the PIC of the business entity (printed in company letterhead, signed by the director on stamp duty of IDR.10,000 and the company stamp)
• National ID (KTP) of the PIC and the director

1. Send all the forms and supporting documents via email to the relationship officer of the healthcare program (BPJS Kesehatan) based on the company location.
2. Wait for feedback from the healthcare program. Usually, they will send the virtual account number of the business entity.

How to register healthcare for an employee?

The healthcare program registration for employees can be made online.

The steps for online registration are the following:

1. Go to BPJS Kesehatan website
2. Click peserta > input data, then search the employee by national identity number (KTP) / JKN-KIS.
3. Choose the mutation and tambahkan sebagai pekerja.
4. Enter the required information (such as employee ID, position title, employee type (permanent, contract) and employee wages).
5. Double-check the data entered, then click OK.

How to deactivate the healthcare for an employee?

Deactivation of the healthcare program for an employee can be made online.

The steps for online deactivate are the following:

Stage 1

1. Go to BPJS Kesehatan website
2. Click peserta > input data, search the employee by national ID (KTP) / JKN-KIS
3. Choose the mutation and non-aktif selain PHK
4. Enter the required information (such as the number of the application letter, the resign reason and mobile phone number of employee).
5. Double-check the data entered, then click OK.

Stage 2

1. Fill in the application letter – signed by the director on stamp duty of IDR 10,000 and the company stamp.
2. Prepare the supporting documents (such as the resignation letter from employee/contract agreement letter).
3. Send all the letters to the relationship officer BPJS Kesehatan based on the company location (latest by the 20th of every month).
4. Wait for the feedback from BPJS Kesehatan.

How to close/deactivate the healthcare program for a company?

Entity closure can be processed online by submitting the required documents to the BPJS Health representative officer (RO).

Entity closure requirements

The closing criteria are:

• Not operating/closed
• Bankruptcy/loss
• Taken over by another party/merger

If the business entity closes because it does not operate, the required documents are:

• A letter requesting closure of the entity from the business entity (signed by the leadership on a stamp duty)
• A certificate from the Manpower Office regarding the closure of a business entity
• Proof of payment of current month’s dues
• The deactivation ticket number of all participants via Edabu (tickets are sent no later than the 20th of the current month to be inactive in the following month)
• BPJS will do a reconciliation (schedule will be notified by the BPJS Health officers after the business entity closure file is complete) to ensure the company is not in arrears before issuing the closing certificate.

If the business entity closes due to bankruptcy/loss, the required documents are:

• A letter requesting closure of the entity from the business entity (signed by the leadership on a stamp duty)
• A certificate from the Manpower Office regarding the closure of a business entity
• A resume of audit results from a public accounting firm (KAP)
• The result of the decision from the commercial court if it is declared bankrupt by the court
• Proof of payment of current month’s dues
• The deactivation ticket number of all participants via Edabu (tickets are sent no later than the 20th of the current month to be inactive in the following month)
• BPJS will do a reconciliation (schedule will be notified by BPJS Health officers after the business entity closure file is complete) to ensure the company is not in arrears before issuing the closing certificate.

If the business entity closes because it is taken over by another party/merger, the required documents are:

• A letter requesting closure of the entity from the business entity (signed by the leadership on a stamp duty)
• A certificate from the Manpower Office regarding the closure of a business entity
• The latest amendment deed
• Proof of payment of current month’s dues
• The deactivation ticket number of all participants via Edabu (tickets are sent no later than the 20th of the current month to be inactive in the following month)
• BPJS will do a reconciliation (schedule will be notified by BPJS Health officers after the business entity closure file is complete) to ensure the company is not in arrears before issuing the closing certificate.

Social security scheme

What is the social security scheme in Indonesia?

Social security (BPJS Ketenagakerjaan) is mandatory for all companies, and employers must register their employees with the BPJS. If you are a freelance, you can also register.

Social security scheme coverage

The social security scheme in Indonesia provides the following protection:

• Working accidents – You will get compensation for any injuries or medical treatment if you experience any kind of accident while working for the company. The contribution will depend on the work risk.
• Old age protection – Once you have retired, you will receive benefits from the scheme, and if you have worked for a company for more than 10 years, you will get the maximum benefit.
• Life insurance – Your heirs will receive the benefit if you die while working for the company.
• Pension benefit – You will receive a guaranteed income when you have retired and only applies to citizens and not foreigners.

Social security scheme contribution

The contribution rates for social security scheme are:

The maximum wage for calculating the BPJS pension plan contribution for March 2021 to February 2022 is IDR 8,754,600. Even if the employee’s wage is more than IDR 8,754,600, the employer and employee will contribute IDR 175,093 and IDR 87,546.

Maximum wages will be received once a year and new maximum wages will be applied in March.

How to register social security for a company?

Registration for social security can be made either online or offline. However, due to the Covid-19 pandemic, it is easier to register online as every visit to the healthcare program office is restricted.

The steps for online registration are the following:

1. Fill the registration form (F1, F1A, F2)− signed by the director on stamp duty IDR 10,000 and company stamp.
2. Attached the supporting documents:
   • Business License (SIUP) / Business Identification Number (NIB) / License Operational
   • Company Domicile / TDP
   • Company National Tax ID (NPWP)
   • National ID (KTP) / Family Certificate (KK), mobile phone number and email address of the director.
3. Send all the forms and supporting documents via email to the relationship officer BPJS Ketenagakerjaan based on the company location.
4. Wait for feedback from the BPJS Ketenagakerjaan. Usually, they send the billing IDs for the first payment.

How to register social security for an employee?

The steps for online registration are the following:

1. Go to the BPJS Ketenagakerjaan website.
2. Click register
3. Choose whether you are registering as a company, individual or migrant
4. Enter the required information
5. Wait for an email and follow the next steps
6. Once completed, you will need to bring the requirements to the nearest BPJS Ketenagakerjaan office.

How to deactivate employee social security program?

Deactivating the social security program for employees can be made online.

The steps for online deactivate are the following:

1. Go to the BPJS Ketenagakerjaan website.
2. Click peserta
3. Choose the mutation and non-aktif

How to close/deactivate the company’s social security program?

Entity closure can be processed online by submitting the documents to Social Security representative officer (RO).

The steps for online registration are the following:

1. Fill the registration form (F1B) – signed by the director with the company stamp.
2. Prepare the letter of statement to close the company – printed with letterhead, signed by the director on stamp duty of IDR 10,000 and the company stamp.
3. Prepare supporting documents such as:

• Original certificate of BPJS Ketenagakerjaan
• Withholding Tax (article 21) filing for the last three months – to prove that there are no more employees paid for the last three months

1. Send the form and supporting documents to the social security relationship officer based on the company location.
2. Wait for feedback from the social security office.

Conclusion

All Indonesian citizens and foreigners who have stayed in Indonesia for over six months must register for the BPJS healthcare program and social security scheme. Contribution rates for the healthcare program for employers are 4% and 1% for employees, while the rate for the social security scheme varies based on the area covered. If you have any further questions, do not hesitate to contact Acclime.