BPJS Kesehatan: A new medicare system ?

IES Bulletin
February 2014
1 | IES Bulletin / February 2014
KPMG Advisory Indonesia
This Bulletin provides information regarding President Decree
No. 12/2013, as amended by President Decree No.
111/2013, regarding Healthcare Insurance managed by the
newly established Healthcare and Social Security Agency
(Badan Penyelenggara Jaminan Sosial Kesehatan or BPJS
Kesehatan).
Following 10 years of discussions and turf battles between
various agencies on the National Social Security Reform Act
(SJSN), particularly on healthcare insurance, the Government
has issued President Decree No. 111/2013 on the newly
implemented comprehensive social security scheme.
The previous social security agency (Jamsostek) has
changed its name to Workers Social Security Agency (BPJS
Ketenagakerjaan).
Whats new?
Both the Healthcare and Worker Social Security schemes
are now compulsory for all workers.
The Healthcare Insurance program is now handled by
BPJS Kesehatan ( prevously by Jamsostek).
There is no opt-out clause for companies who already
provide superior health insurance programs.
Employees are now required to participate and contribute
to this healthcare scheme. Previously, employees did not
contribute.
Indonesian citizens and all residents of Indonesia,
including long term expatriate employees, are required to
join.
Registration with BPJS covers the whole family. Only one
spouse is required to contribute to gain family coverage.
Universal coverage for all Indonesian by 2019
Timing to Register
1-Jan-2014 1-Jan-2015 1-Jan-2016 1-Jan-2019
BPJS Kesehatan is
operational.
Companies which
already joined the
healthcare scheme
of Jamsostek may
start registering its
employees. Non-
employees may also
register themselves
and start paying the
premium to obtain
health insurance
coverage.
Deadline
for small,
medium,
large and
state-owned
enterprises to
register their
employees.
Deadline
for micro
enterprises to
register their
employees.
Deadline
for non-
employees
(who have
means to
contribute)
to register
themselves.
Contribution details for private employers and employees
Contribution per month
Contribution
by
1 Jan 2013
31 Dec 2013
(Jamsostek)
1 Jan 2014
30 Jun 2015
1 Jul 2015
onwards
Employer 3% (single) up
to max. IDR
141,750
or
6% (married)
up to max. IDR
283,500
4% up to
max. IDR
189,000
4% up to
max. IDR
189,000
Employee N/A 0.5% up to
max. IDR
23,625
1% up to
max. IDR
47,250
Note: The above rates are applied to basic salary and xed
allowances up to a maximum of IDR 4,725,000 per month.
The basic contribution provides coverage for a maximum
of ve family members, including step-children. Any
additional family members such as parents and parents-
in-law may be registered with a contribution rate of 1%
per person per month.
Retrenched employees may still claim coverage by the
insurance for a maximum of six months after their last day
of work.
Contribution payments are due by the 10th of each month
or the following work day if the 10th is a public holiday.
Non-compliance
Employers who have not complied to register its
employees are obligated to provide healthcare coverage
similar to the benets provided by BPJS Kesehatan.
Late payments by private employers will be sanctioned
with a 2% interest penalty per month for a maximum
of 3 months. If contributions are unpaid for more than
3 months, the healthcare coverage may be temporarily
suspended along with the loss of certain public services,
including the application/ renewal of business permits
and expatriate work permits and also the application of
driver licenses, certicates of vehicle numbers (STNK)
and passports for individuals.
Regulations governing BPJS
Ketenagakerjaan are still being
drafted. BPJS Ketenagakerjaan will
be in full operation effective 1 July
2015, and is expected to include an
additional pension benet scheme.
It was compulsory for employers
to provide basic health insurance
under the previous Jamsostek
program, although there was an
opt-out clause. Most multinational
companies chose to opt-out of this
program and provide an alternative
program for their employees.
Companies would now need to
re-assess whether to cease or
continue the current healthcare
program to ensure that their
employees are receiving adequate
coverage.
>> KPMG Note:
The social security regulations
provide ample preparation time for
employers to register employees
with BPJS Kesehatan. Employers
may want to inform employees,
considering that an additional
deduction will be applied to their
take home pay. The Tax Authorities
have not issued a regulation
indicating whether the healthcare
insurance portion paid by the
employer is tax deductible or if the
employee portion is considered a
deduction when calculating payroll
Article 21 income tax payable for
the employee.
We are still waiting for regulations
regarding implementation and
expatriate participation. The
previously issued Minister of
Manpower and Transmigration
Regulation No. PER.02/MEN/XII/
2004 states that employers do
not have an obligation to register
expatriates in Jamsostek as long
as the expatriates already have
similar coverage in their home
country. We are looking forward
to hearing further clarication of
whether any similar exemption will
be available for the new program
considering that Indonesia does
not have a Totalization Agreement
(International Social Security
Agreement) with any other country.
Contact us:
KPMG Advisory Indonesia
33rd Flor, Wisma GKBI
28, Jl. Jend. Sudirman
T: +62 (0) 21 570 4888
F: +62 (0) 21 570 4888

Esther Kwok
Partner, International Executive
Services (IES)
E: Esther.Kwok@kpmg.co.id
kpmg.com/id
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