(April 1, 2022) In early 2022, the President of Indonesia issued a directive to encourage eligible individuals to participate in the National Health Insurance Scheme, or BPJS Healthcare, by making proof of participation in BPJS Healthcare a requirement to access commercial licenses and public services.
In President’s Directive No. 11 of 2022 on Optimizing the Delivery of the National Health Insurance Program (“President’s Directive #11 of 2022“), the president directed 30 ministries and agencies to take measures according to their respective duties, functions and authorities to optimize the national health insurance program. Although this directive is questionable, since the government is keen to increasing the stake in BPJS Healthcare is the path he has taken.
Basically, every Indonesian and foreign national who works in Indonesia for at least six months is required to participate in social security programs as stipulated in Article 14 of the National Social Security Agency Act No. 24 of 2011 ( Law No. 24 of 2011).
The National Social Security Agency (Badan Penyelenggara Jaminan Sosial or “BPJS”) is a legal person incorporated to administer the national social security programme. Law No. 24 of 2011 created two national social security agencies, namely BPJS Healthcare and BPJS Employment.
By 2022, more than a decade after the law was enacted, approximately 86% of eligible individuals had received health insurance protection by participating in BPJS Healthcare. Under Presidential Regulation No. 18 of 2020 on the National Medium-Term Development Plan 2020-2024, the participation target for BPJS Healthcare is set at 98% of all eligible persons by 2024. The President’s Directive #11 of 2022 was released in pursuit of this goal.
Under the directive, the Home Secretary is required to synchronize regulations regarding norms, standards, procedures and criteria for public services in the regions to ensure that every citizen is registered as an active participant in BPJS Healthcare.
The Home Secretary is also responsible for encouraging Governors and Regents/Mayors to require applicants for business licenses and public services in their areas to be active participants in BPJS Healthcare. However, no implementing regulations have been published that would give us a better idea of how these instructions might be implemented in practice.
For the issuance of business licenses, the Minister of Investment/Head of the Indonesian Investment Coordinating Board is responsible for supporting BPJS Healthcare’s participation in the business license process in the Single Online Submission System (“OSS “). Governors and Regents/Mayors are also responsible for ensuring that all one-stop integrated services require proof of participation in BPJS Healthcare as one of the documents required for business licenses and public services.
To date, only one implementing regulation has been published and it is the Letter from the Minister of Agrarian Affairs and Regional Planning/Director of the National Land Agency No. HR.02/153-400 /II/2022 of 2022.
This letter requires that each request to transfer land rights or ownership of stacked units due to sale and purchase be accompanied by a copy of the applicant’s BPJS Healthcare card. This requirement obliges people who want to buy or sell real estate to participate in the national health insurance program.
Other utilities that, under President’s Directive No. 11 of 2022, require proof of participation in BPJS Healthcare are:
- General legal administration, intellectual property and immigration services by the Ministry of Law and Human Rights; and
- Issuance of driving license (surat izin mengemudi), vehicle number certificate (surat tAnd oneomor kendaraan) and police certificate (surat keterangan catatankepolisian) by the Indonesian National Police.