Indonesia’s Old Age Insurance Programme reverts to original role
- Charles Chau
The JHT was earlier used to support laid-off workers, said Retno Pratiwi, Manpower Social Security Director at the Manpower Ministry. “With the emergence of JKP, the JHT programme will return to its initial function of offering protection to workers in their old age,” she added.
In addition, Minister of Manpower Regulation (Permenaker) Number 2 of 2022 states that JHT beneficiaries can withdraw their deposit once they turn 56 years of age in accordance with Law Number 40 of 2004 on the National Social Security System (SJSN) to provide protection in old age.
Under the JHT, Pratiwi said workers can register themselves before they turn 56. However, to withdraw a deposit in JHT, participants must at least become a member for a minimum of 10 years.
“Beneficiaries will be given 70% of their deposit. Some 30% will go to housing and 10% will go for other interests,” she explained.
READ: Rising workforce numbers and Industry 4.0 challenge Indonesia’s HR
Besides the JKP, the government has initiated other programmes to help workers affected by layoffs. One of these is the Independent Workers at the Ministry of Manpower, which aims to help workers become entrepreneurs, according to Antara.
