BPJS in Indonesia: Compliance for Local & Foreign Staff

For companies operating in Indonesia, managing employee benefits goes beyond payroll and employment contracts. One of the key compliance requirements is BPJS in Indonesia, the national social security system that provides healthcare and employment protection for workers across the country. 

For employers, the question is often not whether BPJS’ participation applies, but how to manage the obligation, especially when hiring both local and foreign employees.  

Understanding employer responsibilities in BPJS administration, including registration, contributions, and reporting, helps companies remain compliant while ensuring employees receive the required social security coverage. 

Do Employers in Indonesia Have to Provide BPJS? 

Yes. Indonesia operates a mandatory social protection system administered through two agencies. BPJS Kesehatan provides healthcare coverage, while BPJS Ketenagakerjaan manages employment-related social security benefits. 

Under this system, employers must register eligible employees in the BPJS programs. The obligation applies to both Indonesian citizens and foreign nationals who have been working in the country for more than six months, making BPJS participation a standard requirement in employment administration.

READ MORE:

• Employer of Record Services for Hiring Expats in Indonesia
• Employer of Record: The Solution to Hiring Challenges
• Providing Health Insurance for Expats in Indonesia Through EOR

What BPJS Coverage Employers Must Provide to Employees 

Employers in Indonesia must register employees in two main BPJS programs: healthcare and employment social security. These programs provide different forms of protection and form the foundation of the country’s social security framework. 

BPJS Healthcare Program 

The BPJS healthcare program, administered by BPJS Kesehatan, provides employees with access to Indonesia’s national healthcare system. Registered participants can receive treatment through clinics, hospitals, and referral-based specialist services within the BPJS healthcare network. 

The contribution structure is shared between employers and employees. 

Contribution Type	Percentage of Salary
Employer contribution	4%
Employee contribution	1%

These contributions are calculated based on a salary cap determined by the government. 

BPJS Employment Social Security 

Employment-related protection is administered by BPJS Ketenagakerjaan, which offers several programs designed to protect employees during their working lives and after retirement. 

The BPJS Ketenagakerjaan contribution structure includes programs such as work accident protection, death benefits, old-age savings, and pension benefits. 

Program	Employer Contribution	Employee Contribution
Work Accident Insurance (JKK)	0.24% – 1.74% (depending on industry risk)	–
Death Benefit (JKM)	0.30%	–
Old Age Security (JHT)	3.7%	2%
Pension Security (JP)	2%	1%

Employers are responsible for registering employees and ensuring contributions are calculated and submitted correctly. 

How Employers Must Manage BPJS Contributions and Reporting 

Registering employees in BPJS programs is only the first step. Employers must also manage ongoing administration to ensure contributions are calculated correctly and submitted on time. 

Compliance Monitoring 

Both BPJS Kesehatan and BPJS Ketenagakerjaan require employers to monitor contribution payments and employee participation consistently. Companies should establish internal processes to calculate monthly obligations, submit payments before deadlines, and ensure employees remain properly registered. 

Failure to register eligible employees or delays in contribution payments may result in administrative penalties. Regular checks between registered participants and the actual workforce help prevent compliance gaps and ensure employees maintain continuous social security coverage.

Record-Keeping Requirements 

Employers should maintain clear documentation related to BPJS administration. Proper records help demonstrate compliance and support internal HR management. 

Companies typically keep records such as: 

• Employee registration documents 
• Contribution payment receipts 
• BPJS enrollment confirmations 
• Employee deactivation records when employment ends 

Maintaining organized records helps employers verify compliance during audits and respond to employee questions regarding their BPJS coverage. 

BPJS Obligations for Foreign Employees in Indonesia

Foreign workers may also be covered under BPJS programs if they meet certain eligibility requirements. In general, foreign employees who have worked in Indonesia for at least six months are required to participate in the national social security system. 

The employer handles the enrolment process. To register foreign employees, companies typically prepare documents such as: 

• A valid work permit 
• A stay permit (KITAS) 
• Proof of employment 

Once registered, foreign employees may access benefits under BPJS Kesehatan and employment protection programs administered by BPJS Ketenagakerjaan, including workplace accident coverage. 

As with local employees, employers remain responsible for registering eligible foreign workers and ensuring contributions are paid accordingly. 

What Happens If Employers Do Not Comply with BPJS 

Failure to comply with BPJS obligations can lead to administrative and legal consequences for employers. Companies must register eligible employees and ensure contributions are paid on time under the national social security system. 

Possible sanctions include: 

• Written warnings 
• Fines for late or unpaid contributions 
• Delays in obtaining or renewing business licenses 
• Temporary business suspension 

In severe cases, companies that intentionally avoid their BPJS obligations may face criminal sanctions under Law No. 6 of 2023, including fines or imprisonment. Employers are also required to pay any outstanding contributions along with the applicable penalties.

Simplify BPJS and Employment Compliance with InCorp 

Managing BPJS in Indonesia is a key part of employment compliance. Employers must register employees with BPJS Kesehatan and BPJS Ketenagakerjaan, manage contributions, and ensure ongoing reporting obligations are met. When companies hire both local and foreign employees, handling these requirements can become more complex. 

InCorp Indonesia (an Ascentium Company) can streamline employment management while ensuring compliance through our Employer of Record (EOR) services: 

• Employee onboarding and employment administration 
• BPJS registration and contribution management 
• Payroll processing and statutory deductions 
• Compliance with Indonesian employment regulations 
• Employment support for local and foreign workers 

Complete the form below to prioritize operations and growth while ensuring employment obligations are managed properly.

Frequently Asked Questions