By: Dhita Karuniawati )*
The dynamics of the Indonesian workforce have recently faced significant challenges. Waves of layoffs (PHK) across various industrial sectors continue to haunt national workers. Amidst the fluctuating economic situation and efficiency measures taken by many corporations, protecting the financial stability of affected workers is crucial. The government, along with the Social Security Agency (BPJS Ketenagakerjaan), is not standing idly by in addressing this situation. The Job Loss Guarantee (JKP) program has proven to be a crucial instrument or social safety net for laborers and workers forced to lose their livelihoods.
This mass layoff phenomenon is evident in the surge in claims received by BPJS Ketenagakerjaan. Based on the latest monitoring data, the wave of efficiency sweeping the industrial sector has triggered a significant increase in benefit claim disbursements, particularly for the Old Age Security (JHT) and Job Loss Guarantee (JKP) programs.
Ogi Prastomiyono, Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at the Financial Services Authority (OJK), stated that the increase in claims due to layoffs was the primary driver behind the surge in social security fund disbursements. Claims for the Social Security (JKP) program experienced a massive surge, reaching 91 percent year-on-year (YoY). Claim disbursements for Old Age Security (JHT) also increased by approximately 14.1 percent year-on-year.
Ogi Prastomiyono emphasized the importance of implementing prudent and adaptive governance and fund management by the organizers. Through this prudent management approach, he hopes that the balance between ensuring adequate benefits for all participants affected by layoffs and the long-term sustainability of social security funds can be maintained. This statement from the financial supervisory authority emphasized that despite increasing economic pressures on social security funds, protecting workers’ rights remains a top priority and requires strict oversight.
The increase in JKP claims is inextricably linked to various relaxations in participation requirements and additional benefits stipulated in recent regulations, including Government Regulation (PP) Number 6 of 2025. This policy was deliberately designed by the government to ensure that social protection reaches more formal workers who lose their jobs, preventing them from immediately falling into poverty upon losing their monthly income.
To maximize the positive impact of this protection program, BPJS Ketenagakerjaan (Employment Social Security Agency) continues to actively engage in education in various regions. This concrete step is taken to ensure that workers fully understand their rights in the event of a worst-case scenario, such as layoffs. Through intensive outreach regarding the benefits of the JKP program, BPJS Ketenagakerjaan strives to ensure that all formal workers understand the administrative procedures and participation criteria. This is crucial to ensure that, in the event of termination of employment, all contribution period requirements and administrative documentation are met, allowing for smooth disbursement of cash benefits and access to job training without procedural obstacles.
In general, the JKP program from BPJS Ketenagakerjaan (the Social Security Agency for Employment) offers three main benefits, comprehensively designed from start to finish to maintain a decent standard of living for laid-off workers. The first benefit is cash assistance provided monthly for a maximum of six months, amounting to 60 percent of the last reported wage for the first three months and 30 percent for the following three months.
The second, equally important benefit is access to job market information. Registered workers are not only provided with cash assistance but also with assistance in returning to productivity through job vacancy information, job guidance, self-assessment, and career counseling. This ensures workers’ mental health and readiness to compete again in the workforce. The third benefit is job training, provided online or offline through government-owned, private-sector, and company-owned job training institutions. This training aims to improve skills (upskilling) or provide new skills (reskilling) so that laid-off workers have better bargaining power and competency when applying for new jobs or even when considering entrepreneurship.
For workers under the auspices of medium- and large-scale companies, they are required to participate in the four main BPJS Employment programs: Work Accident Insurance (JKK), Death Insurance (JKM), Old Age Insurance (JHT), and Pension Insurance (JP). Meanwhile, for workers who are
In the small and micro business sector, participation regulations require them to participate in at least three main programs: Work Accident Insurance (JKK), Death Insurance (JKM), and Old Age Security (JHT).
Through adaptive regulatory synergy, strict oversight by the Financial Services Authority (OJK), and extensive outreach from the Social Security Agency (BPJS Ketenagakerjaan), the JKP program has truly positioned itself as a tangible state instrument. While the dynamics of layoffs pose a significant challenge to the industrial sector and the national economy, the JKP provides assurance that workers are protected.
*) The author is a contributor to the Indonesian Strategic Information Study Institute