Government Reorganizes Investment Management of BPJS Ketenagakerjaan

The Government, through the Ministry of Law and Human Rights (Kementerian Hukum dan Hak Asasi Manusia/Kemenkumham), is expediting the harmonization process of the Draft Government Regulation (Rancangan Peraturan Pemerintah – “RPP”) concerning the Second Amendment to Government Regulation No. 99 of 2013 on the Management of Employment Social Security Assets (“PP 99/2013”). This regulation will align asset management rules with adjustments to investment instruments and investment limits applicable to the Social Security Organizing Agency for Employment (Badan Penyelenggara Jaminan Sosial Ketenagakerjaan – “BPJS”).

“This discussion is crucial to ensure that the management of social security assets is carried out in a transparent and accountable manner and provides the greatest possible benefit to social security participants,” stated Dhahana Putra, the Director General of Legislation.

This second amendment is expected to address the increasingly complex challenges in managing social security funds, while also providing certainty for investors and workers as beneficiaries. In particular, through more prudent and optimal asset management, it is expected that benefits such as Old-Age Security (Jaminan Hari Tua/JHT), Work Accident Insurance (Jaminan Kecelakaan Kerja/JKK), and Death Benefits (Jaminan Kematian/JKM) will maintain their real value in the future.

“It is still in the finalization stage before being signed by the President,” he added.