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As part of the social security reform processes in Indonesia as mandated by the 2004 Law concerning the National Social Security System, BPJS Ketenagakerjaan must cover all workers in Indonesia, in both formal and informal sectors, totalling 120 million workers distributed in 17,000 islands.
For more than 20 years, the Employment Injury Insurance scheme for workers has provided cash benefits/compensation. In 2014, BPJS Ketenagakerjaan was mandated to reform its social security system. In order to fulfill that mandate, we proposed the Return to Work Programme to the Indonesian Government as a part of social security reform that provides a holistic approach.
In order to achieve service excellence, BPJS Ketenagakerjaan developed a new service blue print putting prime concern on three aspects: People, Process, Physical Evidence.
The institutional reform in 2014 had transformed BPJS Ketenagakerjaan into a new non-profit public entity which is directly responsible to the President of Republic of Indonesia. The creation of this new entity has had an enormous impact on its supervisory system, both external and internal, to ensure its transparency and accountability.
As a result of the new governance landscape, BPJS Ketenagakerjaan has been reconstructing its value and governance system toward the vision of good citizenship governance in 2018.
The social security administrator, as mandated in the Law, must provide a single identity number to its members. As part of the social security reform processes in Indonesia, BPJS Ketenagakerjaan initiated a project to integrate its whole administration system with the National ID administered by the Home Affairs Ministry (which was recently reformed in the agenda of national public administration).
The investment philosophy of BPJS Ketenagakerjaan is to manage and develop the fund optimally by considering aspects of liquidity, solvency, prudence, security of the fund and adequate return. The investment philosophy is implemented by the following principles:
One form of quality management is cost-efficiency. In term of cost-efficiency, BPJS Kesehatan is developing a referral system. Fasilitas Kesehatan Tingkat Pertama (FKTP) acts as a gate keeper for the selection of cases that can treated at the first or second level of health care. Of course this is very important for the aspect of financing, because the cases handled by the second level of health care cost more. The fact is that 144 diagnoses that should be completed in FKTP were still referred to second level health care facilities.