Most Indonesian Households Lack Social Security Coverage

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Adi Ahdiat 04/02/2025 16:25 WIB

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According to BPS data, the majority of Indonesian households lacked social security in 2024, including retirement and old-age pensions, unemployment benefits, and work accident insurance.

Percentage of Indonesian Households with Social Security Coverage (2024)

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Percentage of Indonesian Households with Social Security Coverage (2024)

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The majority of Indonesian households lack social security, including protection against workplace accidents, retirement, and job loss.

This is evident from the 2024 Welfare Statistics report released by the Central Statistics Agency (BPS).

According to BPS data, in 2024 only about 12% of Indonesian households had/received workplace accident insurance.

Furthermore, only about 10% had/received death insurance.

Meanwhile, an even smaller percentage, less than 10%, had/received old-age security, retirement benefits, severance pay for termination of employment (PHK), and unemployment benefits, as shown in the graph.

According to the Indonesian Ombudsman's report entitled "Potential Maladministration in the Optimization of Employment Social Security for Informal Workers" (December 2024), several factors contribute to the low coverage of social security programs in Indonesia.

The Ombudsman found that informal workers generally struggle to pay social security contributions because they are not tied to an employer.

The Ombudsman also assessed that regulatory support and management related to social security programs at the regional level remain minimal, and public education on the benefits of the program is not optimal.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."