ABSTRACT
Monitoring compliance with the social security system aims to ensure that all employees receive their social security rights in accordance with Law Number 40 of 2004 and Law Number 24 of 2011. BPJS Healthcare and BPJS Employment conduct compliance inspections on business entities to verify that enrolment and contributions have been properly implemented. Periodic audits are conducted through document verification, such as employee data, payroll reports, and relevant tax documents, to ensure compliance with regulations. This inspection process not only ensures the welfare of employees, but also prevents potential administrative sanctions for non-compliant business entities. With a strict monitoring system, the implementation of social security is expected to be more effective and transparent.
Social security is a form of social protection designed by state to ensure that all individuals can meet their basic needs and live a decent life. Social security is a system aimed at promoting well-being and providing a sense of security throughout life, including protection against poverty, old age, disability, unemployment, families and children and others.
The national social security system is regulated by Law Number 40 of 2004, which outlines the benefits of the social security program that including Health Protection, Working Accident Protection, Pension Protection, Old Age Protection, and Death Protection for the entire population through mandatory employee contributions. This law also regulates the establishment of an organizing body in the form of legal entity based on the principles of mutual cooperation, non-profit, openness, prudence, accountability, portability, mandatory participation, trust funds and the results of the management of social security funds are entirely for program development and for the greatest benefit of the participants.
Therefore, to expedite the implementation of the national social security system for all Indonesian citizens, and in accordance with Law Number 40 of 2004, the Social Security Administration Agency (BPJS) was established as a non-profit legal entity. Meanwhile, the regulations governing the social security administration agency is regulated in Law Number 24 of 2011, regarding the functions, duties, authorities, right and obligations of the social security system organizing agency.
Based on the law mentioned above, BPJS will replace number of social security institutions in Indonesia. Transformation of health insurance institutions PT Askes Indonesia became Healthcare Social Security Program in early 2014, while PT Jamsostek became Employment Social Security Program in 2015. Both institutions are headquartered in Jakarta and have representative offices at the provincial level and branch offices at the district/city level. This institution is directly responsible to the President of the Republic of Indonesia.
INSPECTION OF THE BPJS HEALTHCARE FOR BUSINESS ENTITIES
In order to ensure that all employees obtain Health Social Security Rights, as obliged in Law of the Republic of Indonesia Number 24 of 2011 Article 11 letter c concerning the Social Security Administration Agency that in carrying out its duties, BPJS Healthcare is authorized to supervise and examine the compliance of Participants and Employers in fulfilling obligations in accordance with the provisions of national social security legislation. Based on this law, every Business Entity registered in Indonesia is required to undergo an annual inspection through sampling.
Monitoring compliance with the obligations to register for membership/submit complete and accurate data is carried out by the BPJS Healthcare branch in accordance with the registered business entity. For example, if a business entity is registered in Central Jakarta, the authorized BPJS Healthcare branch is the Central Jakarta branch.
The compliance inspection process begins with an Inspection Notification Letter which will be carried out 2 (two) weeks after the letter is issued. The notification letter contains the procedures for carrying out the inspection, the date of the inspection, the inspection process, the required verification documents, the schedule for sending the documents and the name, telephone number and email of the Inspection Team on duty.
The process of implementing the compliance inspection itself is carried out by utilizing telecommunication media without face-to-face interaction by the BPJS Healthcare Inspection Team. The inspection is usually conducted unilaterally after the Inspection Team receives the verification documents sent by the Business Entity, two (2) days before the scheduled inspection date set by BPJS Healthcare.
The required verification documents are as follows:
- A summary of all employee data in the form of an excel file, including the ID card/NIK number and the last month’s salary (for employees who are either registered or not registered with BPJS Healthcare at the Business Entity) (example attached).
- Periodic Tax Return for Business Entities Income Tax Article 21 and/or Article 26 Form 1721 (last month).
- BPJS Employment F2A (Wage Details) Report (last month) (example attached).
- Employee payslips (sampling of at least 5 employees, based on variations of different positions).
Example of Employee Data Summary
| EMPLOYEE DATA PT XXX | ||||||||
| NO | Name(RequirEd) | Number of JKN Member | ID Number/ KTP (Required) | Branch/ Subunit/ Sub Instansi | Position/ Title | Basic Salary (Required) | Fixed Allowance(Required) | Non-Fixed Allowance (Required) |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| 1 | ||||||||
| 2 | ||||||||
| 3 | ||||||||
| 4 | ||||||||
| 5 | ||||||||
Example of F2A Report (Wage Details)
After the verification documents are received, the appointed BPJS Healthcare Inspection Team will verify via email, if there is a difference in the number of participants and values listed in the SPT and F2A with the number of participants and values registered at BPJS Healthcare. Business Entities can also clarify if the difference is not in accordance with the verified results, of course, along with other supporting evidence.
Once the verification process has been completed by the Inspection Team and the Business Entity has approved the verification results, BPJS Healthcare will issue a Notification of Inspection Results within 2-3 working days after the inspections.
INSPECTION OF THE BPJS EMPLOYMENT FOR BUSINESS ENTITIES
According to Law Number 24 of 2011 Article 5 paragraph 2 concerning the Social Security Administration Agency that carries out the functions of the working accident protection program, death protection program, pension protection program, and old age protection program is BPJS Employment. Based on this law, every employer or business entity that employs workers is required to register with BPJS Employment.
A business entity registered with BPJS Employment is obligated to report any changes, whether related to employee data or the amounts registered with BPJS Employment, in accordance with the wages/salaries received by the employees. One of the methods for periodic compliance inspections by BPJS Employment is to confirm with the Business Entity regarding the status of the employees through communication media such as email or WhatsApp, carried out by BPJS Employment officers who assist the Business Entity.
With the periodic inspections carried out by BPJS Healthcare and BPJS Employment on Business Entities as employers, it is expected that employees will receive protection to guarantee their basic rights, ensure equal opportunities, and provide fair treatment without discrimination of any kind, in order to promote the welfare of employees and their families, while also considering the progress of the business actor.
The Compliance Consultant Team from SW Indonesia is experienced in assisting clients with inspections conducted by BPJS Healthcare and BPJS Employment. The consultants help organize the client social security data and interact with inspectors from BPJS Healthcare or BPJS Employment. Clients can continue to focus on their core business while the Consultant Team assists them in engaging with regulators who are monitoring compliance with the social security system.
