PT JAMSOSTEK INDONESIA : RISK MANAGEMENT

It’s been 7 years since 2004, but Law proposition (Rancangan Undang-Undang) about Badan Penyelenggara Jaminan Sosial (BPJS) had not yet been completed. This bill was a mandate from UU No. 40/2004 about Sistem Jaminan Sosial Nasional (SJSN), ratified by (former) President Megawati Soekarnoputri. If the law proposition about BPJS was completed, this would become a holding institution that administered four state-owned insurances, which consisted of health insurances, safety insurances, pension insurances and life insurances.

This settlement was collided with oppositions based on the legal entity form of BPJS, whether these four BUMN insurances: PT Jamsostek, PT Asuransi Kesehatan Indonesia, PT Asuransi Sosial Angkatan Bersenjata Republik Indonesia and PT Dana Tabungan dan Asuransi Pegawai Negeri would be merged. In one hand, the constraint in terms of legislation was the unfinished harmonization of several regulations such as UU No. 3/1992 about Jamsostek and UU No. 11/1992 about Pension Fund. Pension Fund was still voluntary and not mandatory. Some laws were still overlapping and burdensome to employers. On the other hand, not all companies provided pension insurances for employees and solely relied on Jamsostek.

On October 2010, PT Jamsostek resisted the merger of four State-Owned Enterprise (BUMN) insurances into one Badan Penyelenggara Jaminan Sosial (BPJS). Four BUMN insurances had differences from characteristics of participants, programs, and most importantly was the difference in how each company covered risk exposures such as market risk and liquidity risk.