Jakarta, Indonesia Sentinel — Workers who lose their jobs due to layoffs will now receive 60% of their salary for up to six months under the Job Loss Insurance (JKP) Program. The new regulation was signed by President Prabowo Subianto on February 7, 2025.
The new policy is outlined in Government Regulation (PP) No. 6 of 2025, which amends PP No. 37 of 2021 on the Implementation of the Job Loss Insurance Program. According to Article 21, Paragraph 1, workers registered under the JKP program will receive monthly cash benefits equivalent to 60% of their last reported salary for a maximum of six months.
Under the previous regulation, laid-off workers also received benefits for six months. However, payments were structured differently, with 45% of their salary provided in the first three months and 25% in the following three months.
“The salary used as the basis for cash benefits is the last reported wage by the employer to BPJS Ketenagakerjaan and must not exceed the maximum wage limit,” states Paragraph 2 of Article 21, as cited on Monday, February 17.
The maximum wage limit for benefits is set at Rp5 million ($320). If a worker’s salary exceeds this threshold, their benefits will be calculated based on the Rp5 million cap.
Protection for Laid-off Workers in Bankrupt Companies
The updated regulation also introduces Article 39A, which ensures that workers remain eligible for JKP benefits even if their employer goes bankrupt or closes and has failed to pay contributions for up to six months.
“Payment of JKP benefits under this provision does not eliminate the employer’s obligation to settle outstanding social security contributions and penalties,” states Article 39A, Paragraph 2.
Job Loss Insurance Qualification
According to the official BPJS Ketenagakerjaan website, JKP provides cash benefits, job market information, and training for workers affected by layoffs.
To qualify for JKP, workers must have been laid off for reasons other than:
- Resignation
- Retirement
- Permanent total disability
- Death
- Expired fixed-term contracts (PKWT)
Workers must meet the following conditions to apply for JKP benefits:
- Provide proof of layoff
- Commit to seeking reemployment
- Be officially reported as inactive by their employer to BPJS Ketenagakerjaan
- Not currently employed in a wage-receiving sector
- Submit an application within three months of being laid off
How to Claim JKP Benefits
First Month Claim Process:
- Log in to the SIAPkerja account via siapkerja.kemnaker.go.id
- Report the layoff by filling out the layoff report form or ensuring the company has reported it
- Complete the benefits claim form, submit a valid bank account, and agree to the Job Search Activity Commitment (KAPK)
- Undergo verification by the JKP program
- Access JKP benefits once verification is successful
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Claim Process for the 2nd to 6th Month:
To continue receiving JKP benefits beyond the first month, applicants must complete a self-assessment on the SIAPkerja website. Additionally, they must fulfill one of the following conditions:
- Apply to at least five companies
- Attend at least one job interview
- Participate in a job training program
With the new regulation in place, Indonesia aims to provide greater financial security for layoffs workers, ensuring they have the support needed to transition back into the workforce. By increasing cash benefits and strengthening worker protections, the government seeks to mitigate the economic impact of job losses while promoting employment stability in the country.
(Raidi/Agung)
