Manpower Minister: JHT for workers’ long-term preparation for retirement

Manpower Minister Ida Fauziyah
Manpower Minister Ida Fauziyah. Photo: DOC. BPJS

IO – Manpower Minister Ida Fauziyah talked about the Old Age Pension program or JHT, according to its Indonesian language acronym, in Jakarta, Monday (2/14/2022). The program is designed to deliver long-term benefits and aims to provide security for retired or elderly workers. 

“As the name implies, JHT is a program intended to prepare workers for their old age. Although they can no longer work, they can continue to live comfortably,” Ida explained. 

JHT is granted to participants who are 56 years of age or older, but this clause does not apply to participants who have passed away or have a permanent total disability (PTD). When a JHT participant dies, the heirs may claim the pension. For workers with PTD, the pension can be claimed after confirmation of PTD is issued. 

Ida also clarifies the assumption that JHT can only be claimed when the participant is 56 years old as not entirely true. According to Law No. 40/ 2004 on the National Social Security System, claims can be partially made if the membership has reached a certain period of time. For example, participants with a minimum of a 10- year participation period are allowed to claim their funds. However, the claim cannot exceed 30% of the JHT benefit for home ownership, or 10% for retirement preparation purposes. 

The remaining JHT benefit can be claimed when the participants are 56 years of age. “If JHT can be claimed 100% at any time, the old age security program will not serve its purpose,” said Ida. 

She further explained that, from the very beginning, the JHT program is designed for participants’ longterm gain. For short-term benefits, the Government has prepared other programs, such as the most recent Job Loss Insurance to help workers who got laid off. Workers can benefit from the new program starting this February. 

The Manpower Minister reveals that the Government has allotted IDR 6 trillion to finance the job loss insurance program. This program is fully supported by Government funds, so workers do not have to pay any premium. Pink-slipped workers will receive benefits in the form of cash, job training and access to the job market. “All the benefits of job loss insurance are intended to guarantee laid-off workers can move on with their lives and become ready for re-employment,” Ida explained. (eka)