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SSEK Legal Consultants: BPJS Healthcare Participation as a Requirement for Public Services in Indonesia

Published on 6 May 2022

(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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Bhumi Varta Technology and Jasa Raharja Sign Spatial Data Utilization Agreement

Published on 6 May 2022

On Tuesday, April 19, 2022, Bhumi Varta Technology and PT Jasa Raharja (Persero) held a ceremonial signing of the Collaboration on Spatial Data Utilization. The document was signed by the CEO of BVT, Benny Emor, and the Director of Institutional Relations of Jasa Raharja, Munadi Herlambang.

This event was also attended by the Deputy for Human Resources, Technology and Information of the Ministry of SOEs, Tedi Bharata, the Assistant Deputy for Insurance and Pension Funds, Anindita Eka Wibisono, and VP of IT at IFG, Joseph Georgino Godong as well as BVT Co-founder and Investor Martyn Terpilowski.

Deputy Tedi Bharta speaking for the Ministry of SOEs' stated in his speech, “all digital transformation needs to be supported” and that he can't wait for the collaboration. He also expressed his happiness that BVT build its software in Tangerang and it is 100% locally made by the Indonesian workforce.

Mr. Terpilowski thanked the attendees from BUMN and Jasa Raharja and stated BVT's commitment, “to make truly world-class software in Indonesia, for Indonesia”. He stated that BVT's location analytics platform can help many government agencies and private companies to make better data-driven decisions. He also stated, “we are producing locally-made mapping products to help with routing and logistics too”.

This collaboration will support digital transformation and provide richer and more efficient solutions for the people of Indonesia.

Bhumi Varta Technology was formed in 2018 and provides location Intelligence and big data analytics for a number of government agencies and private companies. They currently employ over 150 people in their BSD offices and have strong growth plans for the coming years.

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