On 30 June 2015, the Government of the Republic of Indonesia promulgated a Government Regulation No. 46 Year 2015 on Implementation of Old-Age Savings Program (“GR 46/2015“). GR No. 46/2015 is a new legislation enacted which is based on the law that has been previously promulgated, namely Law No. 40 of 2004 on National Social Security System (“Law No. 40/2004“). Old-Age Savings is a cash benefit that is paid at once at the time of participants entering retirement age, death, permanent total disability (“OAS”).

Membership OAS Program

Every employer unless the organization of the State (“Employer”) has to registerhimself and his employees into OAS program to Badan Penyelenggara Jaminan Sosial Ketenagakerjaan (“BPJS Ketenagakerjaan”) according to the stages of membership.

The stages of membership are arranged in Regulation of the President No. 109 Year 2013 on Stages of Social Security Program Membership. The stages are grouped based on business scale which consist of (i) big business; (ii) medium business; (iii) small business; and (iv) micro business. Registration of the membership is required from 1 July, 2015. In addition, micro businesses are not required to follow the OAS program.

Membership of OAS program consists of  (i) participants received the wages who worked on Employer; and (ii) participants who do not received the wages.

Participants receiving the wages includes:

  1. employees on company;
  2. employees on individual; and
  3. foreigners who work in Indonesia for minimum 6 (six) months.

Participants not receiving the wages includes:

  1. employer;
  2. employees outside employment or self-employed; and
  3. employees who is not included in the letter b which does not receiving wages.

If the participants receiving the wages working on several companies, then each of company as the Employer has to register his employee into OAS program, according to the stages of membership. In case the Employer has more than 1 (one) company, then the Employer must join the OAS program for each company.

Registration of OAS Program

Employer must submit the registration form that has been filled completely and correctly, including his data himself and the data of workers and their family members to the BPJS Ketenagakerjaan at least thirty (30) working days since the receipt of the registration form of the BPJS Ketenagakerjaan.

Membership on the BPJS Ketenagakerjaan becomes effective since the membership number issued by the BPJS Ketenagakerjaan. BPJS Ketenagakerjaan must publish the membership card for the Employer and all workers at least 7 (seven) working days since the receipt of the registration form are complete and correct, as well as the first retribution have been paid in full to the BPJS Ketenagakerjaan. The employees have the right to register themselves in the OAS program when the Employer fails to enroll in the employee.

Participants who do not receive the wages can register himself in OAS program into BPJS Ketenagakerjaan according to the stages of membership. The registration can be done on its own, through a container, or a particular group formed by participants who do not received the wages, by filling out the registration form.


Retribution of OAS and Retribution Payment Procedures

The OAS program retribution for the Participants who are working is 5,7% (five commas seven percent) of wages, with conditions:

  1. 2% (two percent) shall be borne by the Employee; and
  2. 3,7% (three commas seven percent) shall be borne by the Employer.

The magnitude of OAS program retribution will be evaluated at regular intervals of no longer than three (3) years. The wages that becomes basic of the OAS retribution is a monthly wages, which consists of the principal wage and fix allowance. If the wages are paid on a daily basis, then the monthly wage as the basis for the payment of OAS retribution from wages calculated a day multiplied by 25 (twenty-five). Retribution of OAS program for participants who do not receive the wages determined by the nominal amount of income from such participant, as described in Appendix GR No. 46/2015.

The OAS retribution payment is mandatory to be paid every month, at the latest no later than the 15th of the following month from the month retribution are concerned. If the 15th falls on a holiday, then the tuition of OAS retribution is to be paid on the next working day.

Late payments on OAS retribution are subject to a fine of 2% (two percent) for each month of late payment calculated from the retribution that should be paid by the Employer.


Benefits of OAS and Payment Procedures

Benefits of OAS is paid in cash which will be paid if the Participants already at the age of 56 (fifty six) years, died, have total permanent disabilities, or left Indonesia permanently. The OAS benefits which will be paid is amounting to the value of the accumulated throughout the OAS retribution which had been paid plus the results of development are recorded in the accounts of individual participants. Moreover, the benefits of OAS that can be accepted by the participants is an extra service in the form of housing financing facility and/or other benefits, which will be further regulated in the ministry regulation.

In order to prepare for retirement, then payment of the OAS can be given partially to some extent when participants have had the shortest membership period for 10 (ten) years. Retrieval of partial benefits the most abundant OAS (i) 30% (thirty percent) of the amount of the OAS, to ownership of the home, or (ii) 10% (ten percent) of the amount of the OAS, for other purposes to retirement preparation. Withdrawal of partial benefits of OAS can only be made once.


When participants died, then the benefits of OAS can be given to the rightful heirs, which include the widow, widower, or children. If the participant has no widow, widower or children, then OAS benefits awarded in accordance with the following order:

  1. blood descendants of workers according to a straight line up and down to the second degree;
  2. siblings;
  3. in-laws; and
  4. the parties appointed in her will by employee.



Violations of the obligation of registration and remittance of by the Employer will be subject to administrative sanction in the form of a written reprimand; a fine; and/or do not get certain public services. What is meant by certain public services, includes business related permissions, permissions required in following the tender project, permit to employ foreign labor, company permit provider workers or labor; or building permit.

Askadarini Harahap

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