Unemployment Insurance (Scheme) In Indonesia : Past, Present, And Future

Rahman, Rofi Aulia (2025) Unemployment Insurance (Scheme) In Indonesia : Past, Present, And Future. In: ТЕМАТСКИ ЗБОРНИК TEMATIKUS TANULMÁNYKÖTET THEMATIC COLLECTION OF PAPERS. University Of Novi Sad, Universitas Surabaya, pp. 507-525. ISBN 978-86-7774-287-4

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Abstract

Abstract: Unemployment insurance (UI) serves as a critical component of so- cial protection systems, aiming to provide temporary financial support to individ- uals who lose their jobs through no fault of their own. In Indonesia, the concept of unemployment insurance has long been absent from the national social security framework. However, recent developments, particularly the enactment of the Job Creation Law (Law No. 11 of 2020) and Government Regulation No. 37 of 2021 con- cerning the Unemployment Insurance Programme, mark a significant shift toward institutionalizing such protection. This paper traces the historical evolution of unem- ployment protection mechanisms in Indonesia, from informal social safety nets to the current statutory model under the BPJS Ketenagakerjaan (Social Security Agency for Employment). It critically examines the current UI scheme’s design, including el- igibility criteria, benefits, funding structure, and administrative challenges. The pa- per further analyses the scheme’s effectiveness in light of Indonesia’s labour market characteristics—such as informality, job turnover, and regional disparities. In doing so, it highlights gaps in coverage and implementation that limit the programme’s im- pact. Looking ahead, this study offers policy recommendations for enhancing the UI system’s inclusiveness and sustainability, including expanding coverage to informal workers, improving inter-agency coordination, and adopting digital infrastructure to streamline service delivery. By adopting a comparative and forward-looking per- spective, this paper contributes to the broader discourse on labour protection reform in Indonesia and emphasizes the role of UI in promoting economic resilience and social justice in the face of future labour market disruptions.

Item Type: Book Section
Uncontrolled Keywords: Unemployment insurance, social security, labour protection, In- donesia.
Subjects: K Law > K Law (General)
Divisions: Faculty of Law > Department of Law
Depositing User: BAMBANG SEPTIAWAN
Date Deposited: 07 Aug 2026 03:02
Last Modified: 07 Aug 2026 03:02
URI: http://repository.ubaya.ac.id/id/eprint/51159

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