Experts Meeting in Indonesia on Social Security and Social Protection Floor: Learning from Regional Experiences Jakarta, December 2011 Lessons Learned and Way Forward in Indonesia Valerie Schmitt, ILO DWT Bangkok

What we have done this week Bachelet Report and development of the SPF Social Protection Floor Assessment Comparative analysis with Convention 102 Discussions and recommendations: - On health care (including HIV) and children - On income security for the working age population (in case of work injury, unemployment, underemployment and poverty) - On income security for the elderly (combination of pensions, long term care) In the framework of the implementation of the SJSN and beyond

The Bachelet Report A floor is the basic entitlement, everyone should have access to it either through contributory or non- contributory schemes The SPF is affordable (2.2% of GDP to complete SPF in Indonesia) – it is not a cost but an investment Social protection has an impact on the rest of the economy, it should be part of the whole building; SPF needs to be defined in coherence with fiscal, economic, trade policies

The Bachelet Report To implement the SPF in an efficient way, a few recommendations: - Pilot test and establish a M&E system can help to know what works and what does not - Targeting the poor can create threshold effects - Inclusion of both FS & IE into the same system in order to avoid that the rich go to a private sector and nobody finance the public sector - Universal and non discriminatory - involve policy makers, experts, local govts, civil society, workers and employers, SS institutions... - Use new technologies

Recommendations – Health Care Health care: - Jamkesmas benefit package only 8 US $/capita/year  increase to 49 $/capita/year for all informal economy + HIV prevetion and treatment = 0.76% of GDP - Design a specific benefit package - Coordination of the development of the roadmap(s) - Long term care and needs in terms of "social" workers – paramedical sector - Plan to increase the number of doctors, midwives, etc. in remote areas

Recommendations – Children and Youth Children and youth: - Free education does not mean that children really have access - Increase the PKH and scholarship program to all poor children; merge PKH and scholarship program to avoid duplication - Tackle the problems of the youth employment and mismatch

Recommendations – Working Age Working age: - Almost no income security mesasures for the IE workers - In the FS high levels of evasion (9 million FS employees registered under SS instead of 30 million) - Low number of labour inspectors (Video from China – how to increase the capacity of labour inspectors) Working age – Unemployment: - If funded the severance pay would cost 6.5% of salaries - Rigid hiring and firing policies contributes to the informal sector, youth employment Promotion of a "flexible but protective" system in Indonesia for all workers with different and adapted measures including income security, measures to facilitate return to work...

Recommendations – Working Age Working age – Employment injury, disabilities: - Establish measures to facilitate return to work or specific programs for people with disabilities in the formal and informal sector - Need to reduce the risks - Role of labour inspectors in the prevention of accidents

Recommendations – Elderly Elderly: - Aging issues: how to fund pensions? New needs (Long term car)? - Minimum pension for all IE workers - For the FS – many options (saving funds) but need to take into account affordability of premiums also for employers, risk of disincentives to hire workers, risk of evasion... - Need also to have pragmatic approach with maybe a lump sum upon retirement and a pension after when the elderly cannot work - Need to include long term care

Future Steps (ILO) Experimentation towards the implementation of the Law – the Single Window Service "SP Home" – NTT Study on "employment security" set of measures including compensation of income/minimum allowance, measure to facilitate return to work, development of capabilities... Implication in the development of regulations under BPJS Law, particularly for BPJS 1, based on lessons learned from experimentation in coordination with other agencies South-South cooperation with China, Cambodia, Viet Nam, Malaysia, Thailand, Philippines...