Ida Fauziyah: JHT Regulations Made Based On Stakeholder Recommendations

Minister of Manpower Ida Fauziyah (Photo: Antara)

JAKARTA - The Minister of Manpower (Menaker) Ida Fauziyah said that the Regulation of the Minister of Manpower Number 2 of 2022 concerning the procedures and requirements for payment of old-age insurance benefits (JHT) was made based on recommendations from relevant stakeholders.

Ida said the relevant stakeholders, among others, submitted recommendations regarding these provisions in a hearing meeting with Commission IX of the DPR RI on September 28, 2021.

The meeting was attended by representatives from the National Social Security Council (DJSN), BPJS Employment Supervisory Board, BPJS Employment Directors, All Indonesian Workers Union Management (SPSI), and All Indonesian Trade Union Confederation Management (KSBSI).

The Minister of Manpower said that in the meeting the relevant stakeholders encouraged the government to establish a policy to restore the Old Age Security Program (JHT) in accordance with its function as mandated by Law no. 40 of 2004 concerning the National Social Security System.

In a hearing meeting with the Ministry of Manpower and Commission IX of the Indonesian House of Representatives on September 28, 2021, relevant stakeholders recommended that the ministry increase the benefits of the Job Loss Insurance Program (JKP) for informal workers and harmonize social security regulations, especially regulations regarding claims for JHT benefits and the Pension Guarantee Program.

The Minister of Manpower also explained that the regulation regarding the payment of JHT benefits was the result of the main ideas of the National Tripartite Institution Working Body on November 18, 2021 in the discussion forum on amendments to the Regulation of the Minister of Manpower Number 19 of 2015 concerning Procedures and Requirements for Payment of Old Age Security Benefits.​​​ The forum recommended returning the philosophy of organizing the JHT Program as a long-term program to provide certainty of the availability of a number of funds for workers when they are no longer productive, namely when entering retirement, experiencing permanent total disability, or passing away.

Ida explained, although JHT is intended to protect workers in old age, when entering retirement, or when they die, or experience permanent total disability, according to Law No. At a certain time, program participants who need it can claim part of the JHT benefits.

"Based on PP 46/2015, claims for some of the JHT benefits can be made if the participant has had a membership period of at least 10 years in the JHT program," Ida said in a press release in Jakarta, reported by Antara, Thursday, February 17.

In this case, program participants can take a maximum of 30 percent of the JHT benefits for home ownership or a maximum of 10 percent of the JHT benefits for other purposes in preparation for retirement.