Indonesia is reinforcing its safety net for workers facing redundancy, with the Ministry of Manpower stepping up efforts to strengthen the country's Job-Loss Insurance (JKP) programme through enhanced financial and employment support, according to multiple media reports.
The ministry said it is continuously improving the scheme to ensure laid-off workers receive not only income support but also better access to training, career guidance and job opportunities while seeking new employment.
Speaking in Jakarta on Wednesday, Anwar Sanusi, head of the ministry's Development and Planning Agency, said strengthening the JKP programme remains a key part of the government's efforts to protect workers affected by job losses.
"Among the mitigation steps we are taking, the first is definitely regarding the JKP, the Job-Loss Insurance. We are continuously improving our services," Sanusi said.
Financial relief
The JKP programme provides eligible workers with cash assistance worth 60% of their wages for up to six months, helping them manage financially while searching for a new role.
Sanusi described the scheme as a vital component of Indonesia's social protection system.
"The JKP is vital. First, it provides a cash benefit that workers can utilise during the waiting period while looking for a new job," he said.
Beyond compensation
In addition to financial assistance, the programme offers a range of employment services aimed at helping workers return to the labour market.
Beneficiaries have access to labour market information, career counselling and job training programmes focused on both reskilling and upskilling.
"The beneficiaries receive job training for both reskilling and upskilling. Then, they gain access to and guidance regarding employment services, such as information on open job vacancies," Sanusi added.
The ministry said these services are intended to improve workers' employability while strengthening Indonesia's workforce.
Eligibility criteria
The Ministry of Manpower is encouraging workers to familiarise themselves with the programme's eligibility requirements to ensure they can benefit from the scheme if they are laid off.
Applicants must be Indonesian citizens, employed as wage earners, under 54 years of age at the time of registration, and enrolled in the BPJS Kesehatan national health insurance programme.
Employees of micro and small enterprises must also be registered with BPJS Ketenagakerjaan for occupational accident, death and old-age insurance, while workers at medium and large enterprises must additionally be enrolled in the national pension scheme.
The government said strengthening the JKP programme will continue to play an important role in supporting displaced workers while helping them re-enter the workforce more quickly through financial assistance, skills development and employment services.