BP Jamsostek Performance Report 2020: Able To Pay All Worker Claims During The COVID-19 Pandemic

JAKARTA – The Employment Social Security Administration Agency (BPJS Ketenagakerjaan/BP Jamsostek) released the Financial Report and Program Management Report (LK-LPP) 2020 on Monday, May 25 in Jakarta. In its report, BP Jamsostek claims that the company's liquidity conditions and investment placements are in a positive condition.

It was stated that the Social Security Fund Assets (DJS) consisting of the Work Accident Security Fund (JKK), Death Security (JKM), Old Age Security (JHT) and Pension Security (JP) grew by 13 percent.

This was achieved despite an increase in JHT claims of up to 22 percent, as a result of the COVID-19 pandemic, and the Relaxation of Contributions policy with discounts of up to 99 percent for six months. The level of Financial Soundness of DJS and BP Jamsostek during 2020 is also in a safe and healthy condition.

Director of BP Jamsostek Anggoro Eko Cahyo said DJS growth was supported by investment performance in 2020. The achievement of this DJS asset investment fund grew by 13.16 percent year-on-year (yoy), with investment returns growing by 11.42 percent yoy.

"DJS assets under management increased by 13 percent to Rp.499.58 trillion at the end of last year's closing," said Anggoro.

Anggoro added that by the end of 2020, there were 50.7 million registered workers with 30 million active participating workers and 684,000 active employers depositing contributions of IDR73.26 trillion.

With this amount of contributions, all claim payments throughout 2020 are even enough to be paid only with the contributions received.

"All DJS programs are managed in good liquidity conditions, as can be seen from the payment of claims that can be settled only with current year contributions," he said.

Furthermore, the realized investment income reached Rp32.33 trillion, so that it could provide a return to JHT participants of 5.59 percent, higher than the average interest rate of government bank counter rate deposits of 3.68 percent.

In terms of benefits to participants, in addition to providing good investment returns, throughout 2020 BP Jamsostek has paid claims or guarantee payments of IDR 36.45 trillion to 2.9 million participants. The amount of the claim payment increased by 22.64 percent.

"Throughout the year, we were escorted by public accounting firms, BPK, OJK, and also the KPK. This was done solely to assure all participants and stakeholders that participant funds were managed prudently and transparently," he explained.

Going forward, BP Jamsostek is said to focus on implementing the Job Loss Guarantee program (JKP) in accordance with the mandate of the Job Creation Act and optimizing the employment social security program in accordance with Presidential Instruction No. 2 of 2021 to increase membership coverage.

“Our highest gratitude goes to all stakeholders for their support so that we can pass the 2020 business year well. Hopefully the employment social security program can provide optimal protection and benefits for all workers in Indonesia," concluded Anggoro.