As a response to the evolving social and economic dynamics, the Indonesian government has renewed the Unemployment Insurance (“JKP”) program which was previously introduced through Government Regulation Number 37 of 2021 (“GR 37/2021”). The JKP program is designed to provide protection to workers who experience termination of employment (“PHK”), by offering benefits in the form of cash assistance, job training, and access to labor market information to encourage a quicker and more directed re-entry into the workforce.
As time goes by, the effectiveness of the implementation of the JKP program has come under scrutiny, especially in relation to labor conditions post-pandemic, economic digitalization, and the dynamics of industrial relations in Indonesia. To address this need, the government then issued Government Regulation Number 6 of 2025 (“GR 6/2025” or “Amendment”) as a revision to the provisions in GR 37/2021.
This Amendment was officially promulgated on February 7, 2025, and brings about several important changes, particularly in crucial aspects such as participation, premium payment mechanisms, the scope of benefits provided to participants, and the procedures for submitting claims. The aim of this revision is to strengthen the governance of the JKP program while also enhancing protection for workers affected by layoffs.
To clarify the direction of government policy, we outline the main points of regulatory changes in the JKP program:
Participation in the JKP Program
The first change concerns the obligation of worker participation in the JKP program based on the classification of company size. In GR 37/2021, workers in large and medium enterprises are required to participate in the National Health Security (“JKN”), Work Accident Insurance (“JKK”), Old-age Benefit (“JHT”), Pension Insurance (“JP”), and Life Insurance (“JKM”) programs. Meanwhile, workers in micro and small enterprises are only required to participate in the JKN, JKK, JHT, and JKM programs.
Through this amendment, there is a more systematic adjustment: workers in large and medium enterprises are still required to participate in the JKK, JHT, JP, and JKM programs, but they are now explicitly required to also be registered in the JKN program. For micro and small enterprises, workers must at least be included in the JKK, JHT, and JKM programs, and are still required to be registered in the JKN program.
Adjustment of Contribution Amount
The number of contributions for the JKP program has also changed. Previously, the contribution was set at 0.46% of the employee’s monthly wage. In GR 6/2025, this amount has been reduced to 0.36%. This adjustment reflects the government’s efforts to balance the contribution burden with the effectiveness of the benefits received by participants.
Requirements for Benefits Acceptance
The contribution period requirements have also been refined. Previously, participants had to pay contributions for at least 12 months within a 24-month period, and six of those months had to be paid consecutively before termination of employment. Now, that requirement has been simplified. The amendment removes the obligation for consecutive payments and only requires an accumulation of payments for at least 12 months within a 24-month period prior to termination. This approach provides greater flexibility for workers in meeting the eligibility criteria for JKP benefits.
Evidence of Termination of Employment
In the aspect of proving layoffs, the previous regulations only accepted documents in the form of acknowledgment of termination, registered collective agreements, or court decisions. GR 6/2025 expands the forms of documents that can be used as evidence, including: collective agreements accompanied by acknowledgment deeds from the Industrial Relations Court, receipts of layoff reports, to court decisions that have permanent legal force. This expansion strengthens the administrative aspect and provides more options for legally valid evidence.
Adjustment of Cash Benefits
The amount of cash benefits provided to participants has also been increased. Previously, participants received 45% of their wages for the first three months and 25% for the next three months. Now, the benefit amount is set at a flat rate of 60% of the monthly wage for a maximum of six months. This policy provides a more significant and equitable increase in benefit value.
Requirements for Vocational Training Institutions
To ensure the quality of vocational training provided, GR 37/2021 requires vocational training institutions to have competency-based training, to be registered and verified in the labor information system, to be accredited, and to receive approval from the Minister. Through amendments, the last requirement – namely, approval from the Minister, was removed, making the verification process more efficient without compromising the quality of the training offered.
Protection for Workers in Bankrupt Companies
One of the new regulations introduced is regarding the provision of JKP benefits for workers in companies that are experiencing bankruptcy. In the event that a company is declared bankrupt or closed and has a maximum contribution arrears of six months, JKP benefits will still be paid by BPJS Employment. However, it is important to note that this provision does not eliminate the obligation to pay the arrears and penalties attached to the company.
Extension of Claim Time for Benefits
Previously, the right to benefits from the JKP would be forfeited if workers did not file a claim within three months of termination. The amendment extends this deadline to six months, providing workers with more time for workers to process their claims, especially in stressful or uncertain situations.
Overall, GR 6/2025 primarily focuses on enhancing social protection for workers, simplifying administration, and adjusting to current labor conditions. Notable changes include reduced contributions, increased cash benefits, relaxed administrative requirements, and guaranteed benefits for workers from bankrupt companies. These improvements reflect the government’s commitment to making the JKP program an integral part of a more inclusive, adaptive, and equitable national social security system.
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