Employee Benefits in Indonesia 2025

The report provides in-depth industry analysis, information, and insights of the employee benefits in Indonesia, including an overview of the state and compulsory benefits in Indonesia, detailed information about the private benefits in Indonesia, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Indonesia.

The Indonesian social security system comprises the provident fund system and social insurance system. Social security in Indonesia covers a small proportion of the population with minimal benefits. With effect from January 1, 2014, a new regime of national social security has been implemented in Indonesia to cover all employees and residents under one healthcare system by 2019, as well as one employment benefits system by 2029. Under the new system, the Social Security Administrator for Health (Badan Penyelenggara Jaminan Sosial Kesehatan; BPJS Kesehatan) will administer healthcare benefits, and BPJS Employment (BPJS Ketenagakerjaan) will administer employment benefits, which cover the risks of old, age, death, occupational accidents, and diseases. The employee benefits market in Indonesia is expected to register robust growth as the country’s government is planning to be one of the world’s six-largest global economies by 2030 as part of its long-term strategy.

Key Highlights

• PT Persero Asuransi Sosial Angkatan Bersenjata Indonesia (PT AsabriPersero), PT Persero Tabungan dan Asuransi Pensiun (PT TaspenPersero), Workers' social security agency (BPJS Ketenagakerjaan), and Social Health Insurance (BPJS Keshatan) are responsible for the functioning of the overall social security system in Indonesia.
• A person’s national insurance contribution is determined based on their income.
• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to credited contribution.
• In Indonesia, the Voluntary Occupational Private Pension program provides private retirement benefits.

Scope

This report provides a detailed analysis of employee benefits in Indonesia

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
• It covers an exhaustive list of employee benefits, including retirement benefits, Short-Term Sickness Benefits, medical benefits, workmen's compensation insurance, maternity and paternity benefits, family benefits, long-term care benefits, unemployment benefits, leaves and holidays, and private benefits
• It highlights the economic and regulatory situations relating to employee benefits in Indonesia

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country
• Assess employee benefits of the market, including state and compulsory benefits and private benefits
• Gain insights into the key employee benefit schemes offered by private employers in the country
• Gain insights into key organizations governing employee benefits market, and their impact on companies