Social Security Number in Indonesia: Explained
Navigating Indonesia’s bureaucratic maze?
Dive deep into the significance and intricacies of the Social Security Number in the archipelago.
Whether you’re a seasoned expat or just setting foot, this guide is your key to understanding one of Indonesia’s pivotal identification systems.
What Is A Social Security Number In Indonesia?
With an ever-growing workforce and evolving labor market dynamics, implementing social insurance schemes has significant implications for businesses operating in the archipelago nation.
All employees in Indonesia, including expatriates and their families, must mandatorily participate in the National Social Security System (Sistem Jaminan Sosial Nasional or “SJSN”).
Social security programs in the country are run by two organizations – the Social Security Administrator for Health (BPJS Kesehatan) for healthcare and the Workers Social Security (BPJS Ketenagakerjaan) for socio-economic protection.
Indonesia, one of the biggest welfare states worldwide, is evolving.
The National Social Security System (SJSN) is a national program to ensure social protection for all Indonesian people – in the formal and informal sectors.
Under the SJSN, all people are expected to obtain sufficient protection against any loss of or reduction in their income due to illness, work accidents, advanced or retirement age, and death.
The right to social security encompasses the right to access and maintain benefits without discrimination to secure protection from:
- a lack of work-related income caused by sickness, disability, maternity, employment injury, unemployment, old age, or death of a family member;
- unaffordable health care
- insufficient family support, particularly for children and adult dependents.
Are The Social Security Number And Social Insurance Number The Same In Indonesia?
Social insurance might be unfamiliar, but most people know its programs.
Citizen-funded, government-administered programs that support the community in financial instability, whether due to financial hardship, disability, or age, are considered social insurance.
Social insurance programs are funded by the people who use them. Look at an average paycheck, and you’ll see Social Security, Medicare, and unemployment deductions.
Those deductions feed the pool of benefits that create a safety net for retirement or in case of hardship or illness.
Most people don’t think of Social Security payments, unemployment benefits, or workers’ compensation as insurance, but that’s precisely what they are: a system that provides a cushion to shield participants from financial harm.
Social security numbers have become the critical functioning element for a wide range of functions.
Immigrants, non-immigrants, etc. hence require social security numbers.
With a social security number, getting a loan, benefits, or even working in a reputed firm becomes possible.
However, along with its wide usage, there are also wider threats involving identity theft. This highlights why you should safeguard your social security number the best.
This safeguard also involves cross-verifying whether someone requires your social security number, whether the law mandates it, or whether you can provide alternative information sources.
How To Get Your Indonesian Social Security Number?
BPJS Ketenagakerjaan is mandatory for any company in Jakarta and Indonesia. Therefore, foreign investors or entrepreneurs who expand their company in the country must register their employees to this kind of BPJS.
Otherwise, for employees who work in Indonesia, your company must provide you with the service of obtaining a Social Security Card.
However, if you are a freelancer and would like to have one, you can also register as an independent Social Security BPJS member.
If you have a Social Security Card, you will have basic protections for:
- JHT (Jaminan Hari Tua/Old Age Protection): This protection will benefit you once you leave the company. Usually, you will get the maximum benefit if you have worked for ten years or more in the same company.
- JKK (Jaminan Kecelakaan Kerja/Working Accident Protection): Suppose you experience any accident during working hours or related to your tasks while working in the company.
In that case, you will receive compensation for any wounds or medical treatments performed.
- JK (Jaminan Kematian/Death Protection): As the name suggests, you will get benefits if you, during your service in the company, die.
- JP (Jaminan Pensiun/Pension Protection): You will receive compensation for this protection if you reach the pension age.
The monthly payment for the Social Security program should be paid by both the company and you (the cardholder).
Both parties should pay for the BPJS according to the type of protection and their monthly salary.
If you are an independent member, you should pay the monthly fee yourself.
Healthcare (Bpjs Kesehatan) In Indonesia
BPJS Kesehatan gives the holders some healthcare protections, including:
- Basic Healthcare Provider: You can choose a doctor or clinic for essential healthcare services. Choose your preferred dentist. You can contact your doctor or clinic at any time.
- Advanced Healthcare Service: If your clinic cannot provide further medical treatment, they will sign a reference letter for you to get unique treatments from specialist doctors or more prominent hospitals.
- Hospitalization Service: If further action needs to be taken, which requires you to be hospitalized, you can use this service.
There are three classes of Healthcare BPJS, which tell you what kinds of and how much the cost of medical treatments are covered. If you choose Class 1 Health Care BPJS, you will need to pay more and receive more services and reimbursement for hospitalization services.
However, if you wish to have VIP services, you must pay extra for hospitalization services. Please note that BPJS cannot cover some advanced medical treatments.
If you wish for more services, you could join another independent healthcare insurance at your own expense.
Types Of Insurances Other Than Bpjs In Indonesia
You can choose from many independent insurance companies if you need extra protection. In this section, we will inform you about the types of insurance in Indonesia.
- Life Insurance
This type of insurance will give you benefits if you die. The insurance company can deliver the benefit to your beneficiaries after you die.
However, some insurance companies enable you to claim your insurance before you die. If you do so, the money received is usually less than when the beneficiaries claim it after your death.
- Health Insurance
You could register for independent healthcare insurance if you already have Health Care BPJS but want more protection. This insurance will give you extra protection if you are ill or undergo specific medical procedures.
Ensure you know exactly what procedures the separate healthcare insurance can cover and how much the reimbursement for any hospitalization is.
- Vehicle Insurance
You can also insure your motor vehicle. This will protect your car in case of a road accident, incident due to riot, incident due to disaster, stolen vehicle, etc.
Again, you must know what incidents or accidents are covered before choosing specific insurance agents.
- Housing and Property Insurance
If you own a property—for both individual and company property and building—you can register them in this type of insurance to protect them from any damage that may occur in the future.
Reading all the clauses in the agreement is highly important to make sure under what circumstances the damage to your house or property is covered.
- Educational Insurance
If you have any members of the family, who are still of school age, this type of insurance is highly recommended. This will give them protection to continue their higher education.
- Travel Insurance
This type of insurance is short-term insurance that will protect the holders while traveling—from when they depart until they return home.
What Does The Social Security Number In Indonesia Look Like?
Social Security numbers were never meant to be used for widespread identification. They were conceived solely to track taxes and benefits.
Every Social Security number starts with three digits, known as an “area number.“
Smaller states might have only one, whereas Jakarta, for example, has 85.
The following two digits are “group numbers,” which can be anything from 01-99 but don’t correspond to anything specific. The last four digits, the “serial number,” are assigned sequentially.
As more banks, credit card companies, and government agencies have used them as proof of identification, Social Security numbers have become a pivotal instrument to fake another’s identity.
Where Can You Find Your Indonesian Social Security Number?
Your Social Security number is often listed on tax documents or financial statements. You can also request a new Social Security card if yours is lost or stolen.
Your Social Security number is needed in many instances, including when obtaining employment, filing taxes, and receiving medical care.
It is also essential to the personal identification information used when accessing and compiling your credit history information.
For security reasons, there may be instances where you are asked to supply your Social Security card when applying for services or employment.
If you are unsure of your Social Security number and don’t have your card, you may be able to verify the number by looking at certain documents, such as your:
- Tax returns
- W-2 form
- 1099 form
- Bank or other financial statements
If you don’t have a Social Security card, you can request a new one by contacting the National Social Security System (Sistem Jaminan Sosial Nasional or “SJSN“).
Conclusion
As we wrap up, it’s evident that the Social Security Number isn’t just a set of digits; it’s an integral part of life in Indonesia.
With this knowledge, expats can confidently stride forward, ensuring they’re always in sync with Indonesia’s administrative heartbeat.
We hope the information provided to you above is sufficient.
Stay Safe!
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