SOCIAL SECURITY & HEALTH INSURANCE
(BADAN PENYELENGGARA JAMINAN SOSIAL (BPJS))

Category: Compliance Services
Written by Dewi Tri Utami on 23/08/2022
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

All Indonesian residents, including expats living in the country for 6 months or more, should obtain Healthcare BPJS (BPJS Kesehatan). This BPJS type in Indonesia is independently processed by individuals.

However, if you are a part of a company for both local and foreign companies, you will also get a Social Security Card (BPJS Ketenagakerjaan). The company provides BPJS to protect all of its employees. Apart from BPJS, there are also other types of independent insurance that you can have.

This article discusses the BPJS types and other insurance types in Indonesia.

WHAT IS BPJS?

According to Law No. 11 of 2020 (UU No. 11 Tahun 2020), the Social Security Organizing Agency (Badan Penyelenggara Jaminan Sosial (BPJS)) is a legal entity that organizes the Indonesian Migrant Labor Social Security program. There are two versions of BPJS: BPJS Kesehatan and BPJS Ketanagakerjaan. BPJS is implemented in Indonesia to give Indonesian people social welfare and health services to improve the quality of life in Indonesia.

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HOW TO REGISTER FOR BPJS

Currently, registration for BPJS Kesehatan and BPJS Ketenagakerjaan can be done online. In more detail, here are the registration steps:

  1. BPJS Kesehatan for Business Entities:

    • The applicant chooses the location following the applicable permits to be registered according to the work area of the BPJS Kesehatan Branch Office.
    • The applicant fills out the entire Business Entity Registration Form and includes the email address used as the activation link delivery address on the official BPJS Kesehatan website.
    • The applicant gets an activation notification via email and activates.

  2. BPJS Ketenagakerjaan for Business Entities:

    • The applicant fills out the entire Business Entity Registration Form and includes the email address used as the activation link delivery address on the official BPJS Ketenagakerjaan website.
    • The applicant gets an activation notification via email and activates.
    • The applicant receives an attachment in the form of a printed registration form for a Business Entity / Legal Entity and access rights that are used to register workers and family members on the SIPP BPJS Ketenagakerjaan website.

BPJS ELIGIBILITY

Both Healthcare BPJS and Social Security BPJS are mandatory. Anyone living in Indonesia and is in employment with a company based in Indonesia must have the two kinds of BPJS. They serve the insurance holders in different ways. This is done as the government’s effort to create the welfare of all Indonesian people.

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INSURANCE & SOCIAL SECURITY TYPES IN INDONESIA

In case you need extra protection, there are many kinds of independent insurance companies that you can choose from. This section informs you of the types of insurance in Indonesia:

  1. Life Insurance:

    This type of insurance gives the holder benefits should the holder passes away. The benefit can also be given to your beneficiaries should you decide to. However, some insurance companies enable you to claim your insurance while still alive. If you do so, the money you receive is usually less than when the beneficiaries claim it after your passing.

  2. Health Insurance:

    If you already have Healthcare BPJS and want more protection, you could register for independent healthcare insurance. This insurance gives you extra protection when you are ill or undergo certain medical procedures. Each health insurance offers different plans. You need to know what your healthcare insurance can cover and how much the reimbursement for any hospitalization is.

  3. Vehicle Insurance:

    You can also insure your vehicle. This insurance protects your vehicle in case of a road accident, natural disaster, stolen vehicle, and other scenarios. Each vehicle insurance offers different plans. Before choosing your insurance plan, you must know what kind of incidents or accidents are covered.

  4. Housing and Property Insurance:

    If you own property for both individual and company property and buildings, you can register them in this type of insurance to protect them from any damage that may occur in the future. Reading all the clausal in the agreement is highly important to make sure under what circumstances the damage of your house or property is covered.

  5. Education Insurance:

    If you have any members of the family, who are still of school age, this type of insurance is highly recommended. Educational insurance gives them protection to continue their education.

SOCIAL SECURITY (BPJS KETENAGAKERJAAN) IN INDONESIA

This BPJS type is mandatory for any company. If you own a company, you must register your employees to this kind of BPJS. Otherwise, if you work in a company in Indonesia, your company must provide you with the service of obtaining a Social Security Card. However, if you are a freelancer and want one, you can also register as an independent Social Security BPJS member. If you have a Social Security Card, you have basic protections for:

  • JHT (Jaminan Hari Tua/Old Age Protection):
    This kind of protection gives you benefits once you have left the company. Usually, you get the maximum benefit if you have worked for 10 years or more in the same company.
  • JKK (Jaminan Kecelakaan Kerja/Working Accident Protection):
    Suppose you experienced any accident during your working hours or related to the tasks you perform while you are working in the company. You receive compensation for any wounds or medical treatments performed.
  • JK (Jaminan Kematian/Death Protection):
    As the name suggests, you get benefits if you pass away during your service in the company.
  • JP (Jaminan Pensiun/Pension Protection):
    If you reach the pension age, you receive compensation from this protection.

HEALTHCARE SECURITY (BPJS KESEHATAN) IN INDONESIA

As the name suggests, this BPJS type gives the holders some healthcare protections, including:

  • Basic healthcare provider:
    Under this service, you can choose a doctor or a clinic in case you need basic healthcare services (to check you whenever you are ill). You can also choose your preferred dentist. You can contact your doctor or clinic at any time.
  • Advanced Healthcare Service:
    In case your clinic cannot give you further medical treatment, they sign a reference letter for you to get special treatments with 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 3 classes of Healthcare BPJS. Each class differs in what kinds of treatment and how much the cost of medical treatments are covered. If you choose Class 1 Healthcare BPJS, you need to pay more. In return, you receive more services and reimbursement for hospitalization services. However, if you wish to have VIP services, you must pay extra money for the hospitalization services. Please note that BPJS cannot cover some advanced medical treatments, for example, heart surgery and some advanced dental procedures. If you wish to have more services, you could join another independent healthcare insurance at your own expense.

TIPS FOR CHOOSING THE RIGHT INSURANCE TYPE

Here are some tips for choosing the right insurance:

  • Choose the right insurance company or agent. Do extensive research on several kinds of insurance agents or companies. Compare them to know the negative and positive sides of their services. Don’t forget to read the customers’ reviews of the companies and their services.
  • Choose the type of insurance that you need. Remember that Healthcare BPJS and Social Security BPJS are compulsory.
  • Make sure that your insurance product has an AAJI (Asosiasi Asuransi Jiwa Indonesia) license, a license for a registered and legal insurance company or agent. If the insurance company cannot show its AAJI license, the insurance products issued by this company are not legal.
  • Match your needs with your financial capabilities.
  • Consider the country boundaries. Regarding healthcare insurance, some products allow you to get benefits if you undergo overseas medical procedures. However, since this type of insurance requires you to pay a lot more, you have to think about whether or not you need it.
  • Consider the insurance product that gives the easiest claim. Some healthcare insurance allows you to benefit from the cashless system (The insurance directly pays the hospital bills). In contrast, others provide the reimbursement (you must pay first). Choose the type that is more suitable for you.
  • Consider using neutral third-party services. You can use a neutral third party’s help if you confuse with all of the regulations and causal of the insurance products or have a language barrier to communicating your needs with the insurance company. Ensure that the third party you trust is reliable and reputable. Research to find one.

HOW CAN WE HELP

Putranto Alliance professional team helps you to register insurance in Indonesia. You don’t need to have a burden to have personal and company insurance.

We help you take care of your personal and company’s BPJS (Healthcare BPJS and Social Security BPJS for you and/or your employees) and your other independent insurance products for your extra protection in Indonesia.

FAQs

BPJS is a legal entity that organizes the Indonesian Migrant Workers Social Security program.

There are 2 types, namely BPJS Kesehatan and BPJS Employment

Thank you for sharing

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