Beginning 1 January 2025 Indonesia has launched a new job loss insurance programme (Jaminan Kehilangan Pekerjaan, JKP) that will provide an important support element for the laid-off employees in the country. This will benefit around 3.76m workers in 110,000 companies across Indonesia.
The new insurance cover is expected to ease the financial burden on companies, enabling them to retain more workers. The JKP programme will offer cash benefits covering 60% of an individual’s wages for up to five months, ensuring workers can maintain purchasing power during their transition.
The programme also includes a training programme for reskilling and easy access to a pre-employment programme, which aims to enhance workers' skills and employability.
The Indonesian manpower minister Yassierli told the media that to further support businesses, particularly in labour-intensive industries, the government will provide 50% subsidies for workplace accident insurance. This will help ease the financial burden on companies, encouraging them to retain employees even during challenging economic times.
Mr Yassierli also said that the government is committed to balancing fiscal policy with social protection measures. The policy aims to ensure that Indonesia’s workforce remains resilient, with both financial and training resources to secure their future in an evolving job market. He said the government will not neglect protection for workers, especially in the labour-intensive sector and those affected by employment termination.
Indonesia started to implement unemployment insurance programme through the issuance of Government Regulation 37/2021 in 2021.