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(1 April 2022) In early 2022, the President of Indonesia issued a directive aimed at encouraging those who are eligible to participate in the National Health Insurance program, or BPJS Healthcare, by making proof of BPJS Healthcare participation a requirement for accessing business licensing and public services.

In Directive of the President No. 11 of 2022 on the Optimization of the Implementation of the National Health Insurance Program (“Directive of the President No. 11 of 2022”), the President ordered 30 ministries and agencies to take steps according to their respective duties, functions and authorities to optimize the National Health Insurance program. While this directive is open to question, since the Government is keen to increase participation in BPJS Healthcare, this is the route it has taken.

Essentially, every Indonesian and foreign national who works in Indonesia for a minimum of six months is required to participate in the social security programs, as stipulated in Article 14 of Law No. 24 of 2011 on the National Social Security Agency (Law No. 24 of 2011).

The National Social Security Agency (Badan Penyelenggara Jaminan Sosial or “BPJS”) is a legal entity formed to administer the national social security program. Law No. 24 of 2011 established two National Social Security Agencies, i.e., BPJS Healthcare and BPJS Employment.

As of 2022, more than a decade after the law was enacted, about 86% of eligible people had received health insurance protection by participating in BPJS Healthcare. Under Presidential Regulation No. 18 of 2020 on the 2020-2024 National Medium-Term Development Plan, the target for BPJS Healthcare participation is set at 98% of all eligible people by 2024. Directive of the President No. 11 of 2022 was issued in pursuance of that goal.

Under the directive, the Minister of Home Affairs is ordered to synchronize the regulations regarding the norms, standards, procedures and criteria for public services in regions to ensure that every citizen is registered as an active participant in BPJS Healthcare.

The Minister of Home Affairs is also instructed to encourage governors and regents/mayors to require applicants for business licenses and public services in their regions to be active BPJS Healthcare participants. However, no implementing regulation has been issued that would give us a better picture of how such instructions might be implemented in practice.

For the issuance of business licenses, the Minister of Investment/Head of Indonesian Investment Coordinating Board is instructed to support participation in BPJS Healthcare as part of the business licensing process in the Online Single Submission (“OSS”) system. Governors and regents/mayors are also instructed to ensure that all one-stop integrated services require proof of participation in BPJS Healthcare as one of the required documents for business licensing and public services.

As of this writing, only one implementing regulation has been issued and that is Letter of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. HR.02/153-400/II/2022 of 2022.

This letter requires every application for the transfer of land rights or Right of Ownership over Stacked Units due to a sale and purchase to be accompanied by a copy of the applicant’s BPJS Healthcare card. This requirement makes it an obligation for people who want to buy or sell property to participate in the National Health Insurance program.

Other public services that under Directive of the President No. 11 of 2022 require proof of BPJS Healthcare participation are:

General legal administration, intellectual property and immigration services by the Ministry of Law and Human Rights; and

Issuance of driver’s license (surat izin mengemudi), vehicle number certificate (surat tanda nomor kendaraan) and police report certificate (surat keterangan catatan kepolisian) by the Indonesian National Police.

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Schneider Electric, a digital transformation leader in energy management and automation, officially handed over the assistance of the CL36 Solar Inverter with a capacity of 36 kWp to the Department of Electrical Engineering, Sriwijaya University. The handover of the Solar Inverter equipment is part of Schneider Electric's initiative in supporting the development of sustainable energy in Indonesia through the transfer of knowledge and technology for the development of ready-to-work human resources.

This solar inverter assistance from Schneider Electric will be used to develop research and development of Solar Power Plants (PLTS) at Sriwijaya University (Unsri) which will be facilitated by the Electrical Engineering Alumni Association (IATE). The handover ceremony was represented by Surya Fitri, Business Vice President of Power Systems, Schneider Electric Indonesia & Timor Leste, to Prof. Dr. Ir. H. Joni Arliansyah, Dean of the Faculty of Engineering, Sriwijaya University, and witnessed by Prof. Ir. Zainuddin Mawawi MM pHD IPU, Vice Chancellor Sriwijaya University, and also Mr. Ir. Bob Saril M. Eng. Sc., IPU, Head of IATE Sriwijaya University.

Surya Fitri, Business Vice President of Power Systems, Schneider Electric Indonesia & Timor Leste said, "Electrification combined with digitization and the use of clean energy from renewable energy sources or known as Electricity 4.0 is the fastest solution in realizing a more sustainable future. To achieve this, of course, an adequate combination of human and technological resources is required.

We are happy to hand over the assistance of the CL36 Solar Inverter equipment with a capacity of 36kWp to the Department of Electrical Engineering Unsri. Research and innovation are very important things and we are happy to be able to support the development of PV mini-grid research for students in universities. We hope that with the help of this tool there will be more research done in the field of renewable energy and generate even more innovations to accelerate sustainable progress in this area."

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