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Govt to withhold workers' JHT benefits; trade union sends Jokowi letter

Tempo - February 15, 2022

M Faiz Zaki, Jakarta – The Indonesian Trade Union Association (Aspek Indonesia) on Monday officially sent a letter to President Joko "Jokowi" Widodo and the Minister of Manpower requesting to revoke the latest regulation that restricts people from withdrawing their old-age benefits (JHT) before reaching the age of 56.

This latest regulation is filed under Manpower Ministry's Regulation No. 2/2022 on old-age benefits. The association urges the government to continue with the Manpower Ministry's Regulation No. 19/2015 that is less restrictive.

The older regulation allows workers to withdraw benefits once they are terminated from a job (resignation or layoff) within one month of the termination.

Aspek Indonesia argues that the previous regulation complies with Constitution's Law No. 40/2004 overseeing the national social security system and no change is needed to be presented.

The association's president Mirah Sumirat argues that the Workers Social Security Agency (BPJS Ketenagakerjaan) JHT premium is taken from 2 percent of workers' monthly wages and 3.7 percent from employers.

This asserts that the old-age benefits have zero government contribution in it, which strengthens their argument that the government has no logical reason to withhold JHT funds.

Source: https://en.tempo.co/read/1561055/govt-to-withhold-workers-jht-benefits-trade-union-sends-jokowi-lette