JHT Disbursement Tax Collection Considered Discriminatory

Illustration - Tax Collection for JHT BPJS Employment. (X/@direktoridosen)

JAKARTA - The All Indonesia Workers Association (ASPIRASI) firmly rejects the policy of tax cuts on the payment of the Old Age Security (JHT) of the BPJS Employment of five percent for the JHT balance above Rp. 50 million, as well as progressive rates for subsequent payments in accordance with the tax provisions which are considered discriminatory and do not favor workers, especially those who are victims of layoffs and workers who are caught in economic pressures.

"JHT is the absolute right of workers. It is the money earned by the sweat of the workers who saved to survive when they were no longer working. It is very unfair when workers who are having trouble, are laid off, or want to turn the money into business capital have to face a tax cut that is burdensome," said President of ASPIRASI, Mirah Sumirat, in his statement. Sunday, June 28.

He assessed that the policy harmed the sense of social justice. The reason is, during active work, workers are already taxpayers through a 21 percent tax deduction every month. In addition, in daily life, workers also pay taxes through various consumption transactions.

"When working, workers' wages are already taxed. When they shop for basic necessities, clothes, to pay for housing, they also pay taxes. When they lose their jobs and want to take their own savings to survive, the state still cuts it again? This hurts the sense of justice," he said.

Mirah reminded the government that the condition of the working class in Indonesia is currently in a difficult situation. In the midst of a wave of layoffs that overshadow various industrial sectors, workers also face the pressure of the cost of living, ranging from the price of basic goods, education costs, transportation and fuel prices, to health costs.

In this crucial situation, the JHT fund is often the last line of defense for workers and their families to survive, pay for children's school, and start micro-businesses. Therefore, the state should be present as a protector and provider of solutions, not reduce workers' benefits in the most difficult times.

Mirah said the government must immediately take concrete steps, such as evaluating the total tax policy on the disbursement of JHT funds, providing full tax exemptions or relaxation for workers who are victims of layoffs and low-wage workers, and returning the essence of JHT as a social protection instrument, not as an object of tax withdrawal that burdens workers.

"The government must also actively involve trade unions in every formulation of policies concerning workers' rights and social security. The state should not be seen as seeking profit from its own people's savings. When workers lose their jobs, all they need is real protection and support, not additional economic burdens," he explained.