KPK Identifies Corruption Risks in BPJS Employment Programme Governance

The Corruption Eradication Commission (KPK) has identified a number of corruption risks in the governance of the Workers Social Security Agency (BPJS Ketenagakerjaan) programme following a study conducted from March to December 2025. KPK Deputy for Prevention and Monitoring Aminudin explained that the risks span from the participant registration process and data management to the claim submission mechanism, all of which require comprehensive governance strengthening. KPK Monitoring Director Aida Ratna Zulaiha detailed that one operational risk involves potential fraud in the registration of participants by business entities and workers. Other risks include the design of construction service participation, which could lead to an imbalance in protection and vulnerabilities to irregularities in the payment of claims for the Death Benefit (JKM) and Work Accident Benefit (JKK) programmes. She stated that the effectiveness of supervision and the enforcement of sanctions against fraudulent practices still need to be reinforced. As a manager of public funds, BPJS Ketenagakerjaan must also strengthen the comprehensive implementation of the three lines of defence system, starting from operational unit controls, strengthening compliance and internal control functions, to independent internal and external audits. Furthermore, corruption risks were identified in aspects under the authority of the Ministry of Manpower. Aida noted that there remains ambiguity in the classification of wage-earning (PU) and non-wage-earning (BPU) participants, as well as the definition of employment relationships, which could potentially create a moral hazard in participation. She added that supervision and inspection mechanisms are still limited, while contribution arrangements in the construction services sector do not fully consider the level of occupational risk based on contract duration or termination. To close these gaps, the KPK recommends strengthening regulations and governance, including refining the implementation of risk-based Know Your Customer (KYC) principles in the registration and claim payment processes for companies and workers. The KPK also urges improvements to the participation design for the construction services sector so that contribution amounts reflect the duration of work and contract validity, thereby more accurately representing the actual risk level. The commission stressed the importance of enhancing the quality and integrity of the BPJS Ketenagakerjaan database as a foundation for accurate verification, and prioritising the strengthening of internal oversight functions to detect and address potential fraud more swiftly. Aida emphasised that all these recommendations must be followed up with concrete and measurable action plans, as the effectiveness of governance improvements can only be deemed successful if their implementation genuinely reinforces the integrity of the social security system for workers and delivers tangible benefits to them.