Ministry Of Finance Asked To Prepare Budget Allocations For Thick Social Security Progrants

Photo: Doc. Antara

JAKARTA - The Ministry of Finance (Kemenkeu) is asked to prepare a budget allocation to strengthen social security programs, especially to expand the coverage of recipients of contribution assistance (PBI) to the middle class.

Member of the Indonesian House of Representatives elected for the 2024-2029 period, Edy Wuryanto, highlighted the middle class phenomenon that has experienced a downward trend of up to 9.48 million people in the last five years, as reported by the Central Statistics Agency (BPS). Edy asked the government to immediately respond to this trend.

"The government must immediately respond to the BPS report. Social security in the employment and health sector must be ensured," said Edy, quoted from Antara, Thursday, October 18.

On the employment social security side, Edy emphasized that the middle class needs protection from various programs, such as Work Accident Insurance (JKK), Death Security (JKm), and Old Age Security Program (JHT).

In addition, the government was also asked to revise Government Regulation (PP) Number 37 of 2021 concerning Job Loss Guarantee (JKP).

In the regulation, it is stated that JKP participants can receive cash assistance for a maximum of six months, access to work information, and job training so that they are ready to return to work in the formal sector.

In that context, Edy requested that the requirements for JKP participants be easier and wider in scope.

"Like contract workers whose contracts are due, they benefit from JKP," he added.

Edy also asked the government to increase the opening of formal job opportunities so that there is no labor force deficit.

As for the health sector, Presidential Regulation (Perpres) Number 36 of 2023 concerning the 2023-2024 Social Security Roadmap targets an increase in the quota for PBI participants for national health insurance (JKN) to reach 113 million people by 2024. Meanwhile, the realization as of August 2024 has only reached 96.7 million people. Edy hopes that the government can achieve the target in the Presidential Decree.

To make this happen, he considered the need for an increase in the budget to reach Rp56.85 trillion from an allocation of Rp48.78 trillion.

"With the addition of allocation to Rp56.85 trillion, it is hoped that the protection of health jamsos will ensure that the reduced middle class group," said Edy.

In line with Edy, economist from the Institute for Economic and Community Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) Teuku Riefky also emphasized that the reach of social security policies needs to be expanded to the middle class. The reason is, there is a downward trend in purchasing power among this group.

The budget allocation can be expanded, especially to include the middle class because purchasing power continues to decline. While the Government is drafting more structural and long-term strategies, such as job creation," said Riefky.