Among an employer's duties in Indonesia, few are as fundamental — or as frequently underestimated by newcomers — as BPJS. It is the national system that gives Indonesian workers health coverage and social-security protection, and participation is mandatory for companies, including every PT PMA.

The two pillars of BPJS

  • BPJS Kesehatan — national health insurance, providing employees access to healthcare
  • BPJS Ketenagakerjaan — employment social security, covering work accidents, death benefits, old-age savings, and pensions

Together they form a safety net for the workforce. Enrolling employees is not optional goodwill; it is a legal obligation of doing business in Indonesia.

What the employer is responsible for

  • Registering the company and its employees in both BPJS programmes
  • Calculating and deducting the employee's share of contributions from wages
  • Adding the employer's share and remitting the total on time each month
  • Keeping records that accurately reflect each enrolled worker

The contribution is shared between employer and employee at rates set by regulation, based on the worker's wage.

BPJS is where a company's respect for its people becomes concrete. It is protection the law guarantees to every Indonesian worker — and honouring it is simply part of being a responsible employer.

Why it matters beyond compliance

  • It protects your employees and their families when they most need it
  • It is checked during licensing, audits, and other interactions with authorities
  • A clean BPJS record reflects a business that takes its obligations seriously
  • Non-enrolment exposes the company to penalties and reputational harm

Getting it right

  1. Register with both BPJS programmes as you begin hiring
  2. Enrol every eligible worker — not a selected few
  3. Calculate, deduct, and remit contributions accurately and on time
  4. Keep your records reconciled with payroll month to month

BPJS turns a legal requirement into something more valuable: a workforce that knows its employer stands behind it. For a foreign company, meeting this obligation fully is a clear signal of good faith to both its people and the Indonesian state. Grafasco helps inbound investors set up and maintain their BPJS obligations correctly, so their teams are protected and their compliance is never in doubt.