BPJS Registration in Indonesia – Who is it for and What Are the Benefits?

The BPJS Registration system in Indonesia has sparked considerable debate, especially among expatriates who may not immediately see the personal benefit of enrolling. However, BPJS has become a mandatory requirement for all Indonesian residents who have been living in the country for 6 months or more. For expatriates holding a KITAS, it is crucial to keep up with BPJS payments, as failing to do so may prevent you from extending your visa.

What is BPJS and Who Is It For?

BPJS (Badan Penyelenggara Jaminan Sosial) is the Indonesian government’s social security system designed to provide universal social protection. This includes healthcare, pension schemes, work-related injury compensation, and death benefits. The aim of the BPJS system is to ensure that people maintain decent living standards when they face income loss due to workplace injuries, old age, retirement, or death.

There are two types of BPJS:

1. BPJS Kesehatan (Health Security) – For individuals and their healthcare needs.
2. BPJS Ketenagakerjaan (Social Security) – For workers and business owners.

BPJS Kesehatan (Health Security)

This healthcare coverage is mandatory for all individuals living in Indonesia, both Indonesian citizens and expatriates, to ensure they have access to basic healthcare services. BPJS Kesehatan covers a wide range of medical services, including doctor consultations, hospital stays, surgeries, medications, and maternity care. The level of coverage depends on the class of service you choose:

• Class 1: Higher quality care at private hospitals (more expensive)
• Class 2: Moderate quality care at both public and private hospitals (moderately priced)
• Class 3: Basic care, usually at government hospitals (cheapest option)

The contributions to BPJS Kesehatan are deducted monthly, and the cost varies depending on the class of service chosen.

BPJS Ketenagakerjaan (Social Security)

This scheme focuses on social protection for workers, and is designed to provide benefits in case of workplace accidents, old age, death, or pension protection. As a business owner, you are required to register all your employees under BPJS Ketenagakerjaan. If you are employed by a company, the company will register you and provide a Social Security Card.

For freelancers or independent contractors, you can also register as an independent member to receive social security benefits.

The social security program includes the following protection:

1. Old Age Protection: This helps workers prepare financially for their retirement.
2. Workplace Accident Protection: Provides compensation in case of injury at work.
3. Death Payment: Financial support for the family of the deceased worker.
4. Pension Protection: Ensures a source of income for workers in their retirement.

How It Works:

• Monthly payments are divided between the employer and employee. The amount you pay depends on the type of protection you select and the worker’s salary.
• Independent members (freelancers) must pay the full monthly fee on their own.

It’s important to note that BPJS Ketenagakerjaan is not a full insurance product, so if you need more specific healthcare insurance, you may want to explore independent insurance companies for additional coverage.

BPJS Registration – What You Need to Know

• For individuals: If you’re living in Indonesia for 6 months or more, you must register for BPJS Kesehatan (Health Security).
• For business owners: You must register your employees under BPJS Ketenagakerjaan (Social Security). If you’re a freelancer, you can apply as an independent member of BPJS Ketenagakerjaan.
• KITAS holders: You are required to maintain active BPJS membership and payments. If you don’t stay on top of this, you may not be able to extend your KITAS.

Benefits of BPJS Registration

1. Health Coverage: BPJS Kesehatan ensures that you have access to basic healthcare, including hospitalization and medical treatment, which can significantly reduce the cost of healthcare services in Indonesia.

2. Social Security for Employees: BPJS Ketenagakerjaan offers protection for workers against workplace injuries, old age, death, and provides a pension scheme, ensuring a level of financial stability for workers in the long term.

3. Compliance with Local Regulations: It’s a legal requirement for expatriates and employers to register for BPJS if living and working in Indonesia for more than 6 months.

4. Peace of Mind: By ensuring you’re registered and covered by BPJS, you avoid any potential issues with immigration or labor authorities, especially when trying to extend your visa or meet work-related obligations.

BPJS Registration Process

• Individuals: If you are an expatriate living in Indonesia, you will need to register for BPJS Kesehatan at the local BPJS office or online, providing the necessary documents, including your passport and proof of residence.
• Companies: Employers must register all employees under BPJS Ketenagakerjaan and BPJS Kesehatan. For freelancers, you can individually register for the social security scheme as an independent member.

BPJS registration is an important aspect of living and working in Indonesia. As an expatriate or business owner, ensuring you comply with these regulations not only helps you stay legal in Indonesia, but it also provides financial security through healthcare and social protection. While the benefits may not always seem immediately apparent, BPJS is an essential part of life in Indonesia and offers peace of mind in case of unforeseen circumstances.

If you need assistance with BPJS registration or have more questions about the process, feel free to reach out to us, and we will guide you through every step of the process to ensure compliance and security for you and your employees.