Problems with the Institutional Form of the Implementing Agency of Social Security in Indonesia

Abstract

The administration of social security in Indonesia is entrusted to two newly formed institutions as mandated by Law Number 40 of 2004 concerning National Social Security System, namely BPJS for Health and BPJS for Employment. The basis for the operation of these two institutions is Law Number 24 of 2011 concerning the Implementing Agency of Social Security. These two bodies are public legal entities that were formed from the transition to the previous form of a limited liability company, namely PT Jamsostek (persero) and PT Askes (persero). The new form of the social security implementing agency as mentioned creates problems that need to find solutions to various problems that occur. Therefore, the purpose of this research is to find out what are the problems with the institutional forms of the Implementing Agency of Social Security in Indonesia. The method used in this research is to use juridical, namely by examining the legal materials, both primary legal materials, secondary legal materials, and tertiary legal materials used. The approach used is a statutory approach and a comparative approach. The research results show that there are problems that arise in the institutions administering social security in Indonesia. These problems are related to the governance of the agency, from the formation process, changes in characteristics from a limited liability company to a public legal entity, the failure to merge social security administering bodies as contained in Law Number 24 of 2011 concerning Social Security Administering Bodies and related to employment aspects in the social security administration body.