Understanding Indonesian employment social security (Jamsostek) (non)participation: exploring perspectives of employers, workers, and policymakers

Arianto, Bimo (2023). Understanding Indonesian employment social security (Jamsostek) (non)participation: exploring perspectives of employers, workers, and policymakers. University of Birmingham. Ph.D.

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Abstract

Through social security reform in 2014, Indonesia demonstrated its commitment to achieving universal social security. However, the employment social security (Jamsostek) participation rate, which was still below 30% of the working population in Indonesia in 2020, indicates that this objective has not been met. A literature review reveals a gap in academic study examining the reasons for this low Jamsostek participation. This thesis therefore explores what reasons lead to the level of participation in Indonesia’s employment social security.

This study employed qualitative interviews with forty individuals from three different groups: employers, workers, and policymakers. The data analysis used thematic methods guided by a theoretical framework developed based on prior research.

The analysis found that formal and informal employers and employees stress distinct reasons for Jamsostek non-participation. Law enforcement ambiguity, lack of information, administrative complexity, unfavourable social norms, and workers’ subservience to employers were seen as barriers to Jamsostek participation. Meanwhile, the level of contribution payment was not a concern for most respondents. The ambiguity of regulations, the ambiguity of authority, and the challenges of inter-institution coordination have hampered the government’s efforts to realise the ideals of universal coverage so that most micro and informal workers continue to rely on non-state welfare provision arrangements.

This thesis adds to the sparse scholarly publications of up-to-date information about the employment social security situation in Indonesia. It is likely the first qualitative research on Jamsostek participation to include employers, workers, and the government.

Futhermore, this study employs a theoretical framework built from previous studies and is combined with empirical data analysis results to construct a framework that may explain the causes for low Jamsostek participation from the viewpoints of employers, employees, and the government. As a result, stakeholders may utilize the framework to gain a more complete picture of the situation and develop recommendations for increasing Jamsostek participation in Indonesia.

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):