The Indonesian Update Volume V No. 11 Maret 2011 (English)

It is mandated by the Article 34 and Paragraph 4 of the 1945 Constitution that the state will develop a social security system for everyone. If referring to the Article 34 and Paragraph 4 of the 1945 Constitution and the Law on the national System of Social Insurance (SJSn), Law number 40/2004 already carries out the mandate of the Constitution. The spirit read in Law 40/2004 is the spirit of Justice for all people in Indonesia.

Article 1 in this Law defines social insurance as a form of social protection to ensure that all people meet the basic needs of life. Thus, it is not excessive if BPJS has been highly anticipated. According to the Article 5, Paragraph 1 of the SJSn Law, the institutions shall be established by the Constitution. Moreover, the Article 52 and Paragraph 2 of the SJSn Act regulate that BPJS should be established within five years after the SJSn Law came into effect. This means that on 19 october 2009 BPJS should have been formed.

The deliberations of the draft BPJS are difficult because there are differences in opinions between the government and Parliament on the nature of this Law. The government believes that the Law is just the definition of BPJS. The government’s stance refers to the Aricle 5 of national Social Insurance scheme, which states that the social welfare body is required to be established by the Law. The question is that how BPJS is managed? If it is not managed, then one possibility for BPJS’ legal status is BUMn.

This edition of the Indonesian Update also raises some important themes in political and social affairs. In politics, it talks about the dividing inquiry right of the DPR. In social issues, it discusses corruption distorting poverty alleviation; food security; as well as the polemics over the publication of the research on bacteria-contaminated milk.

The regular publication of the Indonesian Update with its actual themes is expected to help policy makers in the government and the business sector, academicians, and international think tanks get actual information and contextual analyses on economic, political, social, and cultural developments in Indonesia.

Happy reading!

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