News

Adaptive social protection forum: Social insurance and climate change in Indonesia

Report

• English: Social insurance and climate change in Indonesia: Implications for Adaptive Social Protection ambitions
• Bahasa Indonesia: Asuransi sosial dan perubahan iklim di Indonesia: Implikasi terhadap ambisi Perlindungan Sosial Adaptif

Livestreaming and Recordings

• English
• Bahasa Indonesia

Communications

• English
• Bahasa Indonesia

Event Background

Indonesia is ranked in the top-third of countries in terms of climate risk, with high exposure to all types of flooding, and extreme heat (The World Bank and ADB, 2021). The intensity of these hazards is predicted to worsen, as will the size of population exposed to such hazards. Indonesia is also specifically affected by sea level rise, ranking fifth in the world for the number of people that inhabits lower-elevation coastal zones vulnerable to sea level rise. Climate change might also have impacts on water availability, disaster risk management, urban development, particularly in the coastal zones, and health and nutrition, with implications for poverty and inequality. Increased exposure to a number of climate related risks will result in higher levels of loss and damage, and reduced purchasing power of the population, resulting in loss of revenues for businesses and government.

Under Indonesia’s G20 presidency, social protection systems have recently received more attention to address and manage climate risk as well as to ensure people’s needs are met throughout a just transition. While to date the focus has mostly been on social assistance or non-contributory programmes like cash transfer schemes to narrowly targeted poor households, this report focuses on three social insurance schemes managed by BPJS Employment. With the Covid-19 pandemic, we have seen that countries have resorted to different social protection measures to address some of the unprecedented livelihood and income losses affecting communities everywhere. With a predicted increase in the number of climate extremes and adverse impacts in the future, well-designed preventive, protective and eventually transformative measures will be needed, especially for increasingly exposed and vulnerable geographies like Indonesia. Under such circumstances, social insurance schemes can play a role in effectively covering workers, who are not the primary recipients of poverty targeted interventions.

The Adaptive Social Protection (ASP) approach seeks to bring together social protection, climate change adaptation and disaster risk management sectors to provide comprehensive protection to all in the face of climate risks. The ASP approach traditionally puts more weight on social assistance or non-contributory schemes as mitigation measures over social insurance. This report adds value to discussions on the ASP approach as it explore the role of social insurance or contributory schemes. Social insurance schemes can be recognized as part of the strategy mix that is taken to manage such risks, especially fill the coverage gap for ordinary residents, especially middle-class workers. As Indonesia progresses in developing its first ASP Roadmap, it is an opportune moment to stocktake the potential of social insurance schemes like the Pension scheme (JP), Employment Injury Insurance Scheme (JKK) and the Unemployment Insurance Scheme (JKP) in protecting workers during and after hazards, complementing social assistance schemes that primarily target the very poor.

ILO-GIZ project “Building Social Protection Floors for All - Phase II” conducted a study to explore the potential of social insurance schemes in mitigating the impacts of climate change-related shocks and stresses on incomes and employment of workers in Indonesia, and how these schemes can be expanded to provide affected workers with better protection through temporary adjustments in parameters (e.g., coverage, benefits and qualifying conditions) and operations. The study mainly focused on three schemes namely the unemployment insurance scheme (Jaminan Kehilangan Pekerjaan: JKP), an employment injury insurance scheme (Jaminan Kecelakaan Kerja: JKK), and a pension insurance scheme (Jaminan pension: JP).

In collaboration with the Government, workers and employers and with financial supports from GIZ and the Government of Japan, the ILO has facilitated capacity building and policy dialogues on social protection and climate change since early 2022. The ILO organized a webinar on social protection and climate change for tripartite stakeholders to build knowledge base on 24 November 2022, and shared a concept note for further discussion with Bappenas through Deputy Minister for Population and Employment on 23 April 2022. The ILO further discussed scopes and approaches with Bappenas through Directorate of Poverty Reduction and Community Empowerment on 2 June 2022. The research team shared draft reports and received valuable inputs from Bappenas through Directorate of Population and Social Security on 13 October 2022, BPJS Employment on 13 December 2022, BNPB from 16 December 2022, and tripartite stakeholders at the online consultation meeting on 19 January 2023. This study could not have been finalized without all stakeholders.

Finally, this forum will be the last event supported by the ILO-GIZ project “Building Social Protection Floors for All - Phase II” and will be also an occasion for tripartite stakeholders to contribute inputs to the RPJPN and RPJMN.

Objective

This forum aims to:

1. Facilitate policy dialogues among tripartite representatives and experts on the potential of social insurance to mitigate climate shocks as well as potential challenges of workers and businesses;
2. Share results of the study and recommendations to Adaptive Social Protection; and
3. Facilitate discussion on follow-up actions to be taken by the Government, workers and employers (inputs to RPJPN and RPJMN).

Date and Venue

Thursday, 8 June 2023 at Ballroom 3, Le Meridien Hotel, Jakarta.

Programme and Session Plans

Session 1 and 2 begin by presentations of speakers on specified topics (with PPTs if necessary), followed by inputs from discussants (without PPTs) and open discussion with all the participants. These sessions are concluded by discussing follow-up actions to be taken by the Government, workers and employers (inputs to RPJPN and RPJMN).

Language

Indonesian and English (simultaneous interpretation will be provided)

Financial Support

This event is financially supported by the Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) through the project “Building Social Protection Floors for All - Phase II”.

Invitees

Participants will be experts and representatives of workers, employers, and governments. We are grateful to invite the individuals and institutions listed below.

Invited individuals (in alphabetical order)

1. Mr. Abetnego Tarigan, Deputy II Human Resources Development, Executive Office of the President
2. Mr Adi Budiarso, Head of Centre of Financial Sector Policy, BKF, MOF
3. Mr Agus Wibowo, Director for Strategy Development and Disaster Management, National Agency for Disaster Countermeasure (BNPB)
4. Mr Christianus Panjaitan, National Project Officer, ILO Jakarta
5. Ms Cut Sri Rozanna, Director of Social Protection Programme, GIZ Indonesia
6. Ms Dinar Titus Jogaswitani, Director of Work Relations and Wages, Ministry of Manpower
7. Ms. Dyah Tri Kumolosari, Assistant Deputy Minister for Social Security, Coordinating Ministry of Culture and Human Development
8. Mr. Elan Satriawan, Head of Policy, TNP2K
9. Mr Fadjar Dwi Wishnuwardhani, Principal Expert Staff, Executive Office of the President
10. Ms Gayatri Waditra, Planner, Bappenas
11. Mr Hansen Martin, Country Director, GIZ Indonesia
12. Mr Ippei Tsuruga, Social Protection Programme Manager, ILO Jakarta
13. Mr Koh Yamada, JICA Labour Policy Advisor
14. Ms Mahatmi Parwitasari Saronto, Director of Manpower, BAPPENAS
15. Mr Maliki, Acting Deputy Minister for Population and Employment & Director of Poverty Reduction and Community Empowerment, Bappenas
16. Ms Michiko Miyamoto, Country Director, ILO
17. Mr Mickael Bobby Hoelman, Member, DJSN
18. Mr Muhammad Cholifihani, Directorate of Population and Social Security, BAPPENAS
19. Ms Nuryani Yunus, Assistant Deputy Minister for Harmonization of Employment Ecosystem, Coordinating Ministry for Economic Affairs
20. Mr Paulus Agung Pambudhi, Employer’s representative, DJSN
21. Mr Pramudya Iriawan Buntoro, Director of Strategic Planning and Information Technology, BPJS Employment
22. Ms Putri Indah Anggoro, Director General of Industrial Relations and Social Security, Ministry of Manpower
23. Mr. Rahmadi, Assistant Deputy Minister for Protection and Facilitation of Micro Enterprises, Ministry of Small and Medium Enterprises and Cooperatives
24. Ms Retna Pratiwi, Social Security Director, MOM
25. Mr Ronald Walla, Head of MSME/MSI, APINDO
26. Mr Ronald Yusuf, Head of Financial Inclusion Policy Division, BKF, MOF
27. Mr Saut Sagala, Senior Research Fellow, Resilience Development Initiative
28. Ms Sayanti Sengupta, Social Protection and Climate Change Expert, Independent Consultant
29. Mr Subiyanto, Worker’s Representative, DJSN
30. Mr Teguh Dartanto, Dean, Faculty of Economics and Business, Universitas Indonesia
31. Mr Turro Selrits Wongkaren, Director, Faculty of Economics and Business, Universitas Indonesia
32. Mr Wahyu Utomo, Head of Policy Center, Ministry of Finance

Invited institutions

1. Agence Francaise De Développement (1)
2. Asian Development Bank (1)
3. BPJS Employment (2)
4. BPJS Employment Board of Directors (2)
5. BPJS Employment Board of Supervisors (2)
6. BPJS Health (2)
7. Centre for Strategic and International Studies (CSIS) (2)
8. Confederation of All Indonesian Trade Union (KSPSI) (3)
9. Confederation of All Indonesian Trade Union- Reconciliation (KSPSI-R) (3)
10. Confederation of Indonesian Moslem Union Confederation (KSarbumusi) (3)
11. Confederation of Indonesian Welfare Union (KSBSI) (3)
12. Confederation of National Trade Union (KSPN) (3)
13. Coordinating Ministry of Culture and Human Empowerment (2)
14. Coordinating Ministry of Economic Affair (2)
15. Department of Foreign Affairs and Trade (DFAT) (1)
16. Dewan Jaminan Sosial Nasional (3)
17. Embassy of Canada (1)
18. Embassy of Denmark (1)
19. Embassy of France (1)
20. Embassy of Germany (1)
21. Embassy of Italy (1)
22. Embassy of Japan (1)
23. Embassy of the United Kingdom (1)
24. Embassy of United States of America (1)
25. Embassy of Norway (1)
26. European Union (1)
27. Executive Office of the President (3)
28. GIZ Indonesia (3)
29. Indonesian Chamber of Commerce and Industry (KADIN) (2)
30. Indonesian Employers Association (APINDO) (3)
31. Indonesian Trade Union Confederation (KSPI) (3)
32. International Labour Organization
33. Japan International Cooperation Agency (1)
34. Just Energy Transition Partnership Secretariat, Ministry of Energy and Mineral Resources (1)
35. Ministry of Finance (2)
36. Ministry of Home Affairs (2)
37. Ministry of Manpower (4)
38. Ministry of National Development Planning (Bappenas) (4)
39. Ministry of Public Works (2)
40. Ministry of Cooperatives and Small and Medium Enterprises (2)
41. Ministry of Social Affairs (2)
42. National Agency for Disaster Countermeasure (BNPB) (3)
43. PRAKARSA (2)
44. SMERU Institute (2)
45. TNP2K (2)
46. UKMindonesia, LPEM Universitas Indonesia (2)
47. United Nations Children's Fund (1)
48. UN Green Working Group (1)
49. United Nations Development Programme (1)
50. United Nations Office for the Coordination of Humanitarian Affairs (1)
51. United Nations Resident Coordinator Office (1)
52. World Bank (1)
53. World Food Programme (1)

Note: Numbers in bracket indicate the maximum number of invitees.