OJK: Claims related to layoffs at BPJS Ketenagakerjaan to rise in March 2026
With this approach, it is hoped that a balance between adequate benefits for participants and the sustainability of social security funds can still be maintained in the long term.
Jakarta (ANTARA) - Executive Head of Insurance Supervision, Guarantee, and Pension Funds at the Financial Services Authority (OJK), Ogi Prastomiyono, said that there was an increase in claims related to layoffs against BPJS Ketenagakerjaan in March 2026.
He stated that the phenomenon of layoffs can have an impact on increased benefit payments at BPJS Ketenagakerjaan, especially for the Old Age Security (JHT) and Job Loss Guarantee (JKP) programs.
“Annually (year-on-year/yoy), in March 2026, JHT claims were recorded to have increased by IDR 1.85 trillion or 14.1 percent, which was driven by an increase in the frequency of claims related to layoffs,” said Ogi Prastomiyono in a written response conveyed in Jakarta, Saturday.
JKP claims also experienced a significant increase of 91 percent yoy, among other things influenced by the relaxation of claim requirements and increased benefits as regulated in Government Regulation (PP) Number 6 of 2025 concerning Amendments to Government Regulation Number 37 of 2021 concerning the Implementation of the Job Loss Guarantee Program.
To maintain the sustainability of benefit payments, OJK also encourages prudent and adaptive insurance program management, one of which can be done through periodic evaluations of program design and benefits so that they remain in line with economic conditions and participant risk profiles.
“With this approach, it is hoped that a balance between adequate benefits for participants and the sustainability of social security funds can still be maintained in the long term,” said Ogi.
He stated that the phenomenon of layoffs needs to be a concern for the insurance industry because it can have an impact on asset quality and premium growth, especially in the credit insurance and credit life insurance business lines.
He added that if they are laid off, people tend to prioritize basic needs so that insurance policies risk lapsing (becoming inactive), while on the other hand, risks in credit insurance increase due to the potential for debtor defaults.
This can create pressure on the claim ratio and company solvency if it is not properly anticipated.
“In credit life insurance, even though the risks covered primarily are death or permanent total disability, deteriorating economic conditions due to layoffs can also contribute indirectly to increased claims, for example through health factors or psychosocial pressures,” said Ogi.
To anticipate that the claim ratio remains maintained, he asked insurance companies to strengthen overall risk management.
The steps that can be taken, according to him, include tightening the underwriting process, especially in sectors that are vulnerable to layoffs, making premium adjustments to suit current risk profiles, and ensuring that there is a risk-sharing scheme with banks so that credit distribution remains prudent.
“In addition, strengthening the claims verification process and evidence of insurability is also important to mitigate potential moral hazard, accompanied by increased data integration with banks so that monitoring the quality of debtor credit can be carried out earlier and more accurately,” said Ogi.