Employee Insurance in Indonesia

Types of Health Insurance in Indonesia

Employers in Indonesia are required to provide various types of health insurance to their employees, including:

• BPJS Kesehatan (Health Insurance): A mandatory health insurance scheme that covers medical treatments, hospitalisation, and preventive care. Both employers and employees contribute to this scheme.

What is BPJS?

BPJS stands for Badan Penyelenggara Jaminan Sosial (Social Insurance Administration Organization). BPJS administers the Indonesian national health insurance / Jaminan Kesehatan Nasional or JKN for short.

There are two versions of BPJS: BPJS Health (the successor of PT Askes) and BPJS Manpower (the successor of Jamsostek).

BPJS Health Rate

Total contribution = 5% x total income (salary and fixed allowance)

4% will borne by the employer, 1% will borne by the employee.

Maximum total income for base computation is IDR 12 million per month.

Schedule of BPJS Health

• BPJS Payment
  • 10th of the current month
• Registration, Deregistration and Update
  • 20th of the month, and will update by BPJS on the 1st of next month.

Register / Deregister BPJS Health

• Register BPJS Health
  • Online on the Website (For Indonesian and the status is employee)
  • Manual submission to officer (Foreign employee or Indonesia employee but the status is not receiving income)
• Deregister BPJS Health
  • Online on the Website, download the form from the Website
  • After sign, need to upload the form to website.

• BPJS Manpower

BPJS Manpower, also known as BPJS Ketenagakerjaan, is a government agency that was established to provide social security protections to employees.

BPJS Manpower has five benefit schemes for the members:

• Jaminan Hari Tua / Old Age Saving – A protection program with the aim of ensuring that participants receive cash if they enter retirement age, permanent disability, or passed away.

Contribution Rate:

• Jaminan Kecelakaan Kerja / Accident Insurance – Benefits in the form of cash and/or health services provided when the participant experiences a work accident or illness caused by the work environment

Contribution Rate Based on the type of work:

• Jaminan Kematian / Life Insurance – Cash benefits given to heirs when the participant dies not due to a work accident or work-related illness.

Contribution Rate:

• Jaminan Pensiun / Pension Insurance – Protection program organized to maintain a decent standard of living when participants lose or reduce their income due to entering retirement age or experiencing permanent total disability.

Contribution Rate:

Maximum total income for base computation is IDR 10.547.400 million per month.

• Jaminan Kehilangan Pekerjaan / Job-Loss Insurance – Guarantees given to workers/Labourers who experience termination of employment with the aim of maintaining a decent standard of living when workers lose their jobs. Workers can meet the basic needs of a decent living when there is a risk due to termination of employment while trying to get a job again.

Contribution Rate:

Maximum total income for base computation is IDR 5 million per month for the first time.

Statutory Requirements

Under Indonesian law, employers must:

• Enroll Employees in BPJS Kesehatan: This insurance must cover all employees, including part-time and temporary workers.
• Contribute to Premiums: Employers must contribute a portion of the premiums for BPJS Kesehatan, while employees also contribute a smaller portion through payroll deductions.
• Report Employee Data: Employers must regularly update and report employee data to the BPJS Kesehatan to ensure accurate coverage and contributions.

Coverage and Benefits

BPJS Kesehatan typically covers:

• Inpatient and Outpatient Services: Medical treatments, surgeries, and hospital stays.
• Preventive Care: Vaccinations, health screenings, and prenatal care.
• Medications: Prescribed medications and certain medical supplies.

Private health insurance may offer additional benefits such as:

• Specialist Consultations: Access to specialists without the need for a referral.
• International Coverage: Coverage for medical treatments abroad.
• Dental and Vision Care: Enhanced coverage for dental and vision services.

Best Practices for Employers

To ensure effective management of employee health insurance, employers should:

• Select Reputable Insurance Providers: Partner with reliable insurance companies to offer high-quality coverage.
• Communicate Benefits Clearly: Inform employees about the insurance benefits available to them and how to utilise these benefits.
• Regularly Review and Update Policies: Periodically assess insurance policies to ensure they meet the changing needs of employees and comply with legal requirements.

Importance of Employee Health Insurance

Providing employee health insurance is important for several reasons:

• Employee Well-being: Insurance coverage helps employees manage health risks and medical expenses, leading to improved well-being and job satisfaction.
• Attracting and Retaining Talent: Comprehensive insurance benefits are a key factor in attracting and retaining skilled employees.
• Legal Compliance: Adhering to statutory insurance requirements helps employers avoid legal issues and penalties.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Indonesia employment laws and regulations, please visit the official governmental websites.

Updated on: August 2025