Coordinating Ministry for Human Development and Culture: Social protection for informal workers must be strengthened

The Coordinating Ministry for Human Development and Culture (PMK) believes that adaptive social protection for informal workers must be further strengthened in line with Indonesia’s ageing demographic transition.

“The government has adopted adaptive social protection, combining assistance with guarantees. Whereas previously we only provided assistance, we are now also strengthening social security,” said Woro Srihastuti Sulistyaningrum, Deputy for Coordination of Family Quality Improvement and Population at the Coordinating Ministry for PMK, during a discussion in Jakarta on Thursday.

According to research by the DBS Foundation titled “Indonesia’s Demographic Transition: Building Readiness Today for a Better Tomorrow”, one of the primary challenges in Indonesia’s employment landscape is the continued dominance of the informal workforce. Low and uncertain incomes, limited job security, and weak access to benefits hinder efforts by informal workers to save for retirement and old age.

Furthermore, the research indicates that 84.75 per cent of the working elderly population is situated within the informal sector. This condition restricts their access to pension funds, stable income, and other forms of social protection.

Woro acknowledged that social security measures, such as Job Loss Insurance (JKP), Old Age Benefits (JHT), and Death Benefits (JKM), are currently concentrated among formal workers who possess more clearly defined and measurable wage systems.

“It is true that we still cover many in the formal sector because the system is clearer,” she stated.

Meanwhile, the government is currently working to protect informal workers by expanding the scope of social security. One such effort involves expanding employment social security by encouraging participation from the informal sector, including domestic workers, online motorcycle taxi drivers, couriers, as well as workers in the fisheries and plantation sectors.

Additionally, Woro highlighted the Ministry of Social Affairs (Kemensos) programme through ATENSI (Social Rehabilitation Assistance), which provides comprehensive rehabilitation services for vulnerable groups such as persons with disabilities, the elderly, children, and other marginalised groups.

“We have actually attempted to strengthen coverage for informal occupations. In fact, they are already being guaranteed. Regarding protection, we have ATENSI within the Ministry of Social Affairs. So, if we look at this, there is an effort on our part to expand the scope,” said Woro.

“This is something we need to consider for the future, including providing ease of access, such as simplified payment or registration processes,” she added.