New Regulation on Social Insurance for Self-Employed Individuals

The Minister of Employment(“Minister”)has issued Regulation No.1 of 2016 on Guidelines for the Implementation of Work-Accident Insurance, Life Insurance, and Old-Age Benefit Programs for Self-Employed Individuals(“2016 Regulation”).The 2016 Regulation sets out provisions relating to the relevant procedures, mechanisms and premium payments for self-employed individuals/entrepreneurs as regards registration and the receipt of benefits from three types of social-security program organized by the Social Security Agency for Labor (“BPJS”), namely: work-accident insurance, life insurance, and old-age insurance. [1] Prior to the issuance of the 2016 Regulation, these matters were stipulated under Ministry Regulation No. PER.24/MEN/VI/2006 on Guidelines for Implementing Social Security Programs for Self and Informally Employed Workers (“2006 Regulation”). [2] The 2016 Regulation is of relevance to self-employed individuals who are participating in BPJS programs or who are intending to participate in these programs.Registration: Procedures and RequirementsSelf-employed individuals in possession of an Identification Number [3] /Personal Identification Card [4] and who are under 56 years of age must register themselves as participants (“Participant”) in the BPJS program. [5] Registration can be undertaken either manually or electronically by a Participant through the following BPJS offices: [6]