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Do you Comply with BPJS Employment Program in Semarang?

Posted 26.03. 2019 by Cekindo / Last update on 29.03. 2019

Do you Comply with BPJS Employment Program in Semarang? Review by tenissa.tjahjono on 26. 3. 2019 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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Will you be covered by the social security program in Semarang? This is an important question for many expats moving to Semarang to join their family or a new career.

Under new regulations across entire Indonesia, it is now compulsory for all Indonesian residents, including expatriates who have been working and living in Indonesia for more than 6 months, to participate in BPJS (Badan Penyelenggara Jaminan Sosial) Employment Program in Semarang.

Before this regulation, foreigners working and living in Semarang were not required to obtain the BPJS, if they have already been covered in their home country outside of Indonesia. In the program, BPJS Kesehatan or Healthcare BPJS will be processed by an individual foreigner in Semarang.

However, if you are part of the local or foreign company in Semarang, you are also entitled the BPJS Ketenagakerjaan (Social Security Card), provided by the company. The purpose of the BPJS Social Security Card is to protect employees working in Semarang, including the foreigners.

Our article explains in brief how the BPJS Employment Program in Semarang works and how this may affect you as a foreign national or as an employer.

BPJS Types in Semarang

The BPJS Employment Program has two parts that run separately, namely

  • a social security program
  • a health care program

Both Healthcare BPJS and Social Security BPJS are compulsory for locals and foreigners living and being under employment in Semarang. Both types of BPJS have different functions, and the differences are described in the following paragraphs.

Healthcare BPJS

Under the BPJS Employment Program, even if a company has already provided employees access to a better healthcare program, they are still required to register their employees under the Healthcare BPJS.

Healthcare BPJS gives employees certain healthcare protections that include basic healthcare provider, advanced healthcare service, and hospitalisation service.

It can also be categorised into three classes based on the costs and types of medical treatments covered.

  • Class 1 has a higher fee, and it covers more medical and hospitalisation services.
  • Class 2 or Class 3, you will need to pay additional costs for extra medical services as they are not covered in your package.

It is worth noting that Healthcare BPJS will not cover a specific type of complex medical treatments such as advanced dental procedure and heart surgery. Furthermore, BPJS works based on cooperations between local hospitals, doctors and the program. Therefore you are entitled to using only specific facilities stated in advanced based on your location.

Social Security BPJS

A Social Security BPJS is compulsory for all companies, and it is the responsibility of the company, who hires employees to register them under this type of BPJS.

For freelancers who would like to take the advantages of the Social Security BPJS, you are permitted to register yourself as one of the independent members of Social Security BPJS.

With Social Security BPJS, you will have protections that include

Old Age Protection,
Working Accident Protection,
Death Protection,
Pension Protection.

Both the employer and the employee will pay the fee for Social Security BPJS on a monthly basis. The amount of payment differs based on how high the salary of the employee is.

Sanctions for Non-Compliance to BPJS

According to the authorities in Semarang, there are still some companies that do not meet the requirements of the mandatory BPJS regulations. Often, it was due to improper management of employees, so HR representatives forgot to apply for new insurances for their employees or cancel those of fired staff.

However, it was also found out that a few of companies in Central Java and especially in Semarang even reported employees’ salaries that are much lower than reality to make the employer’s contribution to BPJS smaller as well.

According to the Ministry of Manpower in Indonesia, for companies that were in non-compliance to the BPJS Employment Program, only a verbal or a written warning was given. Now, they would like to implement more severe sanctions such as the annulment of the company’s business permit.

To comply with the BPJS Employment Program in Semarang and avoid sanctions, Cekindo assists companies with registration of their employees via outsourcing. Let us know, and our professionals from Semarang will check your company’s documents and apply for BPJS on your company’s behalf.





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