Government Asked to Postpone JHT Regulation

The postponement of the Minister of Manpower Regulation No. 2/2022 is needed to organize the Job Loss Insurance program to be more inclusive and effective in protecting workers.

KOMPAS

Workers who are members of the Confederation of Indonesian Trade Unions demonstrate in front of the Ministry of Manpower building, Wednesday, February 16, 2022, regarding the Minister of Manpower Regulation No. 2 of 2022.

JAKARTA, KOMPAS — A labor union has asked the government to postpone implementation of Manpower Minister’s Regulation No. 2/2022 on a change in procedure to withdraw from the old age savings, or JHT. The delay is needed in order to give the government more time to prepare the Job Loss Guarantee (JKP), a new employment benefit program, so it was more inclusive and effective in protecting workers.

The call to delay the regulation was conveyed by trade union leaders during a meeting with Manpower Minister Ida Fauziyah during a protest against the new regulation on JHT withdrawals in Jakarta on Wednesday (16/2/2022).

The president of the Confederation of Indonesian Trade Unions (KSPSI), Elly Rosita Silaban, said the issuance of Manpower Minister’s Regulation No. 2/2022 was untimely because workers were facing intense pressure from the impacts of the pandemic, the digital disruption and reduced rights as a result of the implementation of the Job Creation Law.

“When this regulation was issued, workers were shocked. The time is not right and there is still a lack of consultation. I think that if there were a chance for discussion, we would participate in providing input so that the problems could be minimized,” said Elly.

Also read:

> Don’t Put Workers’ Welfare At Stake

> JKP Unemployment Benefit Needs Review

The regulation needed to be postponed so the government had enough time to evaluate the JKP program as a replacement for the JHT and make it more inclusive and accessible. Currently, the JKP is provided only to permanent formal workers with a certain membership period who have been dismissed (PHK). Meanwhile, workers who resign, contract workers whose contracts have expired, and informal workers are unable to access the JKP.

Carlos Rajagukguk, the chairman of the Labor Union Federation for Trade, Informatics, Finance, Banking and Various Industries, said it would be difficult for workers to access the unemployment benefits provided by the JKP, because Government Regulation No. 37/2021 on the implementation of the JKP required workers to file a claim for their JKP benefits three months after they were laid off. If they missed the deadline, they would lose their right to the benefits.

“This could occur, because industrial disputes related to layoffs usually take a long time, either in the bipartite dialogue or mediation processes, especially if [the dispute] reaches the industrial relations court. It's impossible to meet the three-month deadline," said Carlos.

KOMPAS/AGUS SUSANTO

Masses of workers who are members of the Confederation of Indonesian Trade Unions demand the removal of the Minister of Manpower Ida Fauziyah at the Office of the Ministry of Manpower on Jalan Gatot Subroto, Kuningan, South Jakarta, Wednesday (16/2/2022).

Entrepreneurs also said the issuance of the new regulation on the JHT was untimely. The chairman of the Indonesian Outsourcing Business Association (ABADI), Greg Chen, said the association agreed with the need to reorganize the social security system and to restore the JHT’s function as an old-age savings program, but that the issuance of the new regulation on the matter was rushed. As a result, employers and workers faced difficulties in responding to the situation and prepare backup measures.

"Don’t be too hasty, and it should be implemented in three months’ time. It would be wiser if the [regulation’s] implementation is based on a schedule, for example, the regulation is to be made effective in January 2023. Thus, companies and workers will have the time to prepare budgets, communications, and standard procedures,” said Greg.

Effective

Meanwhile, after accompanying the Manpower Minister in receiving the workers, Manpower Ministry secretary-general Anwar Sanusi said meeting with the workers had been conducive. During the meeting, the Manpower Minister also had time to convey many things related to the purpose and substance of Manpower Minister’s Regulation No. 2/2022.

“Indeed, there were inputs and aspirations from workers regarding the regulation. The minister listened and promised she would listen to their aspirations and to study them," he said.

Also read:

> Workers Need Urgent Protection

Meanwhile, the ministry’s industrial relations and social security director general, Indah Anggoro Putri, said that the issuance of Manpower Minister’s Regulation No. 2/2022 was not rushed. The regulation was issued after a number of discussions and meetings with the relevant parties, she added.

"Now, we have the JKP in hand. So, this is the right time for us to reorganize the entire social security in every work cycle with all the risks it faces," said Putri.

The ministry’s social security director, Retno Pratiwi, said the Workers Social Security Agency (BPJS Ketenagakerjaan), also known as BP Jamsostek, should be able to ensure that the JKP was effective in protecting workers who had lost their jobs and in encouraging employers to register their workers with BPJS Ketenagakerjaan.

This article was translated by Hendarsyah Tarmizi.