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LAW OF THE REPUBLIC OF INDONESIA

NUMBER 3 YEAR 1992
REGARDING
SOCIAL INSURANCE FOR THE WORKFORCE

IN THE NAME OF GOD ALMIGHTY

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

Considering: a. That national development as the application of the five

principles of Pancasila is done in the context to develop the
human resources of Indonesia, to create a prosperous, just and
equal community, both materially and spiritually;
b. That with the ever increasing role of manpower in national
development throughout the country and the increasing use of
technology in the various business activity sectors could result
in higher risks of safety, health and the well fare of the
workforce, therefore the workforce protection efforts should
also be increased;
c. That the workmen protection for employee within or outside
of the working relation is arranged through a worker social
insurance programme will not only give peace but also will
give positive effect to the worker’s discipline and productivity;
d. That Law No. 3/1951 regarding the Enactment of the Law of
Republic of Indonesia regarding Accident No. 33/1947 to be
valid throughout Indonesia (State Gazette of Indonesia
Number 3/1951) and the Government Regulation No. 33/1977
regarding Employee’s Social Insurance (State gazette of
Indonesia No. 54/1977, State Gazette of Indonesia Supplement
No.3112) have not completely cover the Worker’s Social
Insurance issue, therefore is deemed to be no longer adequate;

Recalling: 1. Article 5 para. (1), Article 20 para. (1) and Article 27 para. (2) of
the 1945 Constitution;
2. Act of Republic of Indonesia No. 3/1951 regarding the
enactment of Worker’s Supervision No. 23/1948 throughout
Indonesia (State Gazette of Indonesia No. 4 Year 1951);
3. Law Number 14 Year 1969 regarding Basic Provisions of
Workforce (State Gazette of Indonesia No.55/1969, State
Gazette of Indonesia Supplement No. 2912);

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 4. Law No.1/1970 regarding Occupational Safety (State Gazette
of Indonesia No.1 Year 1970, State Gazette of Indonesia
Supplement No. 2918);
5. Law No. 7/1981 regarding Company’s compulsory obligation
for Employment Reportage (State Gazette of Indonesia No.
39/1981, State Gazette of Indonesia Supplement No. 3201).

With the approval of

THE PEOPLE’S REPRESENTATIVES ASSEMBLY OF
THE REPUBLIC OF INDONESIA

DECIDED

To establish: LAW REGARDING WORKER’S SOCIAL INSURANCE

CHAPTER I
GENERAL DEFINITION

Article 1
In this regulation, the term:
1. Worker’s Social Insurance is a form of protection to the workers, in the form of
cash compensation for the loss of his/her partial income and services resulting
from conditions suffered by the employee, such as working accident, illness,
pregnancy, old age, and death;
2. Workforce is every one who is able to work inside or outside of working
relationship in order to produce goods and services to fulfill community’s
demands;
3. Entrepreneur is:
a. Person(s), association or legal body running their own company;
b. Person(s), association or legal body that independently run a company
owned by others;
c. Person(s), association or legal body within the Indonesian territory that
represents the person(s), association or legal body as stipulated in point a
and point b that resides outside of Indonesia;
4. Company is every form of organization that hires manpower, either profit and
or non-profit oriented, either state-owned and or private.;
5. Payment is a receipt of gratitude from the Entrepreneur to the Worker to
compensate for a job which about to be or had been done in the form of cash,
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 the amount of which was determined based upon an agreement, or regulation
and given based on a work-agreement between the Entrepreneur and the
Worker, including allowance for the Worker himself or his family;
6. Occupational Accident is an accident that happens whilst the worker is on his
way to the work-place from his/her home and vice versa;
7. Disability is the condition of loss of function(s) or degradation of function(s) of
a body part that directly or indirectly affecting the ability to work;
8. Illness is every health disturbance that requires medical attention, including
checkup, medication, and/or medical attendance;
9. Health Maintenance is the efforts to handle and prevent health disturbances
that requires medical checkup and treatment, and/or attendance, including
pregnancy and labor;
10. Worker’s Control Officer is a technical officer from the Manpower Department
that were assigned by the Minister;
11. Executive Body is a legal institution that was appointed to conduct the worker’s
social insurance program;
12. Minister is the Minister of Manpower.

Article 2
Social organization and other forms of association that are not classified as a business
company/corporation can be treated as one, if it has daily organizer and employ
others just like any other company hires their workforce.

CHAPTER II
THE ORGANIZATION OF
WORKER’S SOCIAL INSURANCE

Article 3
(1) To provide protection, a Worker’s Social Insurance program is conducted by
implementing insurance mechanism;;
(2) Every workman is entitled for Worker’s Social Insurance.

Article 4
(1) The Worker’s Social Insurance Programme is an obligation of every company to
their employee that were hired in a working relationship as stipulated in this
Law;

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(2) The Worker’s Social Insurance Programme for those employees whose work
and occupation are not covered with a working relationship will be further
regulated by a Government Regulation;
(3) The requirements and protocols for conducting an Worker’s Social Insurance
Programme as stipulated in paragraph (1) will be further regulated by a
separate Government Regulation.

Article 5
Policies and General Supervisions for the Worker’s Social Insurance Programme will
be further stipulated through a Government Regulation.

CHAPTER III
THE WORKER’S SOCIAL INSURANCE PROGRAMME
Part One
Scope of Coverage

Article 6
(1) The Employee’s Social Insurance Program scope of coverage in this Act
includes:
a. Occupational Hazard Insurance;
b. Life Insurance;
c. Pension Insurance;
d. Health Insurance.
(2) Further development of the Worker’s Social Insurance Programme as stipulated
in (1) will be further regulated by a Government Regulation.
Article 7
(1) The Social Insurance as stipulated in Article (6) is provided and meant for the
Workers.
(2) The Social Insurance as stipulated in Article (6) point d is also valid for the
Worker’s family.

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 Part Two
Occupational Hazard Insurance

Article 8
(1) A worker who suffered from occupational accident is entitled for an
Occupational Hazard Insurance.
(2) Those who are entitled for an occupational hazard insurance are:
a. Apprentice workers and students who work with the company, both
being on pay-roll or non-paid workers;
b. Contractors, except if the company uses one of their own unit;
c. Criminal Convicts who are assigned to work in the company;

Article 9
The Occupational Hazard Insurance as meant in Article 8 paragraph (1) covers:
a. Transportation costs;
b. Costs of medical checkup, treatment, and/or attendance;
c. Rehabilitation costs;
d. Cash compensation, that includes:
1. compensation for being temporarily unable to work normally;
2. compensation for permanent partial disability ;
3. compensation for permanent total disability, physically or mentally;
4. compensation for death.

Article 10
(1) An Entrepreneur must submit a report any occupational accidents befalling
their worker(s) to the Department of Manpower and the Provider within no
longer than 2 x 24 hours.
(2) An Entrepreneur must submit a report to the Office of the Department of
Manpower and the Provider within no longer than 2 x 24 hours after an
occupational accident’s victim after he/she is declared fit, disabled or dead by
the medical doctor who looks after him/her;
(3) An Entrepreneur must look after the legal rights of the worker who was victim
of an occupational accident until he/she receives his/her rights from the
Provider.
(4) The procedures and formats of the reports as meant in paragraph (1) and
paragraph (2) will be stipulated by the Minister.

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 Article 11
The list of illness that may arise due to the work-relation and their changes shall be
stipulated through a Presidential Decree.

Part Three
Life Insurance

Article 12
(1) The family of an Employee who lost his/her life not in occupational related
accident are entitled to receive the Life Insurance of the deceased;
(2) The Life Insurance as meant in para (1) include:
a. The widow or widower;
b. children;
c. parents;
d. grand children;
e. grand parents;
f. brothers and sisters;
g. in-laws;

Part Four
Pension Funds

Article 14
(1) The Pension funds can be given as a lump sum, or periodically, or apportial plus
periodically, to the employee as the result from:
a. Having reached the age of 55 (fifty five) years, or
b. Total disability by a doctor’s statement.
(2) In the case of death to the worker, the Pension funds will be paid to the
widow/widower, or their children.

Article 15

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The Pension as meant in article 14 can be paid before the Employee reach the age of 55
(fifty five years old), after reaching certain degree of participation, which will be
established by a Government Regulation.

Part Five
Health Insurance

Article 16
(1) The Employee, husband or wife, and their children are entitled for a Health
Maintenance Insurance.
(2) The Health Maintenance Insurance shall include:
a. First degree out patient ;
b. Advanced degree out patient;
c. hospitalization;
d. pregnancy observation and birth giving assistance;
e. supportive diagnostics;
f. special treatments;
g. emergency treatment;

CHAPTER IV
PARTICIPATION

Article 17
Both the Entrepreneur and workers are obligated to participate in the Employee’s
Social Insurance Program.
Article 18
(1) The Entrepreneur is required to have in their possession a list of employees and
their families, pay roll with their respective changes and the list of accidents that
occurred in the company or their independent subsidiaries;
(2) Aside from the obligation as meant in para (1), the Entrepreneur is required to
submit the employment and company data that are related with the provision
of the Employee’s Social Insurance Program to the Executive Institution;
(3) Should the Entrepreneur fail to submit the factual data as meant in para (2), and
causing some of their Employee’s not being included in the Employee’s Social
Insurance program as stipulated in this Act;

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(4) Should the Entrepreneur fail to submit the factual data as meant in para (2),
and casuing a shortage in insurance payment, the Entrepreneur will have to
make up for the shortage;
(5) If the Entrepreneur failed to submit the factual employment data as stipulated
in para (2), and causing an excess in insurance payment, the Entrepreneur will
have to return the excess to the Executive Institution;
(6) The format of employee’s pay roll list, list of accidents that must be included in
a log-book and the procedure for submitting the factual employment data as
meant in para (1) and para (2) is to be stipulated by the Minister.

Article 19
(1) The stages of participation in the Worker’s Social Insurance Program shall be
stipulated through a Government Regulation.
(2) In the case where the company is a non-participating party in the Worker’s
Social Insurance Program due to the staging of participation as meant in para
(1), the Entrepreneur is required to provide the worker’s accident insurance
coverage as stipulated in this Act.
(3) The procedures of implementation of the worker’s right s meant in para (2)
will be stipulated by the Minister.

CHAPTER V
THE RETRIBUTIION, AMOUNT OF INSURANCE, AND
PAYMENT PROCEDURE

Article 20
(1) The retribution of Occupational Hazard Insurance, retribution of Life Insurance,
and the rebribution of Health Insurance shall be borne by the Entrepreneur.
(2) The retribution of Pension Insurance shall be borne jointly by the Entrepreneur
and the Employee.

Article 21
The amount of retribution, it’s procedure, payment requirements, amount of fines,
and the format of worker’s social insurance program are established by a Government
Regulation.

Article 22
(1) The Entrepreneur is required to cover the retribution and to collate the
employee’s retribution liability through deductions of salary and payment to the
Executive Institution within a time limit set through a Government Regulation.
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(2) In the case of a belated payment of the retribution as meant in para (1) the
matter shall be settled through a Government Regulation.

Article 23
The amount and payment procedures of Occupational Hazard Insurance, Pension
Insurance, and Health Insurance service procedures is to be established through a
Government Regulation.

Article 24
(1) The calculation of payment of the Occupational Hazard Insurance, which must
be given to the worker is done by the Executive Institution according to
prevailing laws and regulations.
(2) If the calculation of the amount of the Occupational Hazard Insurance as
stipulated in point (1) is incorrect, the Employment Control Officer will
recalculate and decide the amount to be payed according to prevailing laws and
regulations.
(3) In the case involving an accident and the amount of the Occupational Hazard
Insurance as stipulated in point (1) are not yet included in the implementation
stipulations of this Act, it will be decided by the Minister.
(4) Any difference of opinions and in job calculations, and in the magnitude of the
Occupational Hazard Insurance as stipulated in point (1) and Point (2) will be
settled through stipulations by the Minister.

CHAPTER VI
EXECUTIVE INSTITUTION

Article 25
(1) The Worker’s Social Insurance Program is to be conducted by a Executive
Institution;
(2) The Executive Institution as meant in point (1) is a State-Owned Company and
founded on prevailing laws and regulation;
(3) The State-Owned Company as stipulated in point (2), in conducting its
functions and duties will prioritize services to the participants in order to
enhance the protection of and well being of the employee and their families.

Article 26
The Executive Institution as stipulated in Article 25 point (2), will duly pay the
Employee’s Social Insurance within no longer than 1 (one) month.

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 Article 27
Control over the execution of the Worker’s Social Insurance Program by the Executive
Institution as meant in Article 25 will be exercised by the Government.
While exercising the supervision, the Government will embrace the Entrepreneur and
the Employee, in the format of an association that supervises the execution of
Worker’s Social Insurance program according to prevailing laws and regulations.

Article 28
Placements of investments and funds management of the Employee’s Social Insurance
Program by the Executive Institution is to be regulated with a Government
Regulation.

CHAPTER VII
CRIMINAL PROVISIONS

Article 29
(1) Whosoever failed to fulfill the their obligations as stipulated in Article 4 point
(1); Article 10 point (1), point (2) and point (3); Article 18 point (1), point (2),
point (3), point (4), and point (5); Article 19 point (2); Article 22 point (1); and
Article 26; is liable for a 6 months of imprisonment maximum or a maximum
fine of Rp. 50.000.000,- (fifty million rupiahs);
(2) In the case of any recurrence of the violation as meant in para (1) for the second
time or more, after the final decision has a legal power, the violator is liable for a
maximum 8 months of imprisonment;
(3) The criminal act as meant in para (1) is a violation of law and regulation.

Article 30
Without diminishing the criminal provisions as stipulated in article 29 point (1) and
point (2) over the Entrepreneur, Worker, and the Executive Institution, those who do
not conform to this Act and its implementory regulations will be liable for
administrative sanctions, compensations, or fine which will be further regulated
through a Government Regulation.

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 CHAPTER VIII
INVESTIGATION

Article 31
(1) Other than the official investigators from the Police Forces of The Republic of
Indonesia, some official from the Manpower Department according to their
duties and responsibilities are granted special authority to investigate as
stipulated in Law No. 8/1981 regarding Criminal Law Procedures (State
Gazette of Indonesia No. 76/1981, Supplement to State Gazette No. 3029) to
perform investigation of the violation as regulated in this Act.
(2) The Investigators, as stipulated in point (1) are authorized to :
a. Conduct an assessment and investigate the truthfulness of the statements
related to the criminal act against the Worker’s Social Insurance;
b. Conduct an assessment and investigate upon individual or institution
suspected of committing a violation against the law regarding the
Worker’s Social Insurance;
c. Taking statements and evidences from the individual or institution
suspected of committing a violation against the law regarding the
Worker’s Social Insurance;
d. Conducting investigation in certain places that were suspected to have
evidences and to seize everything that can be used as evidence of a
violation against the law regarding the Worker’s Social Insurance;
e. Conducting first investigative attempt whilst at the site of crime where the
violation against the law regarding the Worker’s Social Insurance took
place..

CHAPTER IX
MISCELLANEOUS PROVISIONS

Article 32
Any excess payment that have been received by their proper recipient cannot be
claimed back.

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 CHAPTER X
TRANSITIONAL PROVISIONS

Article 33
(1) During the period leading to the issuance of follow-up regulations of this Law,
all existing laws and regulations pertaining to the Worker’s Social Insurance is
to stay in force as long as it is not contrary to this Act.
(2) During the period leading to the issuance of follow-up regulations of this Law,
companies that already conducted the worker’s social insurance program and
other social insurances shall continue on with the program.
(3) The workers that already been covered by or participated in the worker’s social
insurance program and/or covered by another social insurance program at the
time of enactment of this Law shall not be made to suffer a loss.

CHAPTER XI
CLOSING PROVISIONS

Article 34
Upon promulgation of this Act, the Law No. 2/1951 regarding the Establishment of
Act of Accident No. 33/1947 covering all Indonesian Territory (State Gazette No. 3/
1951) is declared to be revoked.

Article 35
This Act will be put into force at the time of its promulgation. In order to ensure that
the law is known to all people, herewith order for placement of this Law in the State
Gazette of the Republic of Indonesia..

Validated in Jakarta
On February 17th, 1992

The President Of The Republic Of

Indonesia

Signed

Soeharto
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Established in Jakarta, Indonesia
On February 17th, 1992

Secretary of The State

Signed

Moerdiono

State Gazette of The Republic Indonesia No. 14/1992

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 ELUCIDATION
OF
ACT OF THE REPUBLIC OF INDONESIA
NUMBER 3 OF 1992
REGARDING
EMPLOYEMENT SOCIAL INSURANCE

GENERAL DEFINITION

The development of the employment sector as a part of developing the human

resource is an inseparable part of the National Interest as the application of the five
principles of Pancasila, and as the embodiment of the Constitution, it is directed to
increase the value, prestige, skills, and self confidence to achieve the prosperous and
just community as the final objective of the national development.
Participation of the workforces in national development in ever increasing
accompanied by various challenges and risks. Therefore, it is necessary that the
workforces is given the proper protection, maintenance and safety, which will in the
end increase the national productivity.
The format of protection, maintenance and social affluence, is conducted in a form of
base foundation of social insurance program, based on joint cooperation, communal,
and togetherness as meant in the spirit and soul of the five principles of Pancasila and
the Constitution. Basically, the program puts an emphasis on the protection of the
workforce, who relatively are in significantly weaker position. Therefore, the
Entrepreneur is the prime responsible party, and morally obligated to provide
protection and well being of the employees. Besides, it is the nature of man to form a
family and to support them. Therefore, not only the prosperity of the employee is
concerned, but also of their families in order to increase the community’s affluence in
general terms, which must stay protected even when the employee has lost some or
all of his/her income as a result of social risks, such as occupational accident, death,
and old age.
In order to create a foundation base to increase the well being, protection and
prosperity of the workers, this Act will put emphasis on the conduct of employment
social insurance as the embodiment of social responsibilities as stipulated in Law No.
14/1969 regarding Basic Provisions of Workforce Employment.
Essentially, the social insurance program is meant to provide assurance of the
continuality of the family’s income to compensate for the partial or total loss of all
income.
The Worker’s Social Insurance program has several aspects, a.o. :
a. Providing the basic protection to support minimal life requirements of the
employee and their family;

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b. As an appreciation to the workforce who have dedicated their energy and mind
to their company.
The implementation of the worker’s social insurance program as meant in this Act is
the application of Article 14 and Article 15 of Law No. 14/1969 regarding Basic
Provisions of Workforce Employment which includes Occupational Safety & Hazard
Insurance, Life Insurance, Pension Insurance, and Health Insurance. But recalling that
the objectives of the worker’s social insurance program are prioritized to those who
work for the Company, salaried individuals, for those individuals who works outside
of the work-relation with the company i.e. not working for a company, their social
insurance rights will be further regulated separately through a Government
Regulation.
The scope of coverage of this Act include:
1. Occupational Hazard Insurance
Occupational Accidents, or Occupational related illnesses are some of the risks
that must be faced by the working man. To compensate for the loss of partial or
all of their income as result from death, disability due to occupational accidents,
a Occupational Hazard Insurance is necessary.
Considering that the stadium of mental disturbance resulting from occupational
hazard is relatively difficult to assess, the insurance or compensation will only
be paid when the mental illness is causing permanent disability to the subject
worker and render him to be unfit for further work.
2. Life Insurance
The workers who lost their life outside of their lines of work will similarly result
in the loss of income, and will quite significantly affect the social economic lives
of the families that are left behind. Therefore, Life Insurance is extremely
important to reduce their burden, either in a form of funeral cost or cash
payments.
3. Pension Insurance
The coming of old age will result in loss income due to the loss of ability to
work. The loss of income will cause anxiety to the working man and will
seriously affect those who are still able to work, especially those with low
income. The pension insurance provide assurance of continual of income which
can be paid as a lumpsum, or periodically when the worker reached the age of
55 (fifty five years old) or satisfy the prerequisites.
4. Health Insurance
Health maintenance is meant to increase the productivity so that the employee
can give their best at work and is also a curative effort.
Considering that curative effort is costly and will further be a burden to the
employee if he has to pay the costs by himself, it is therefore deemed necessary
to provide the community with a worker’s social insurance program.
Other than the above, the Entrepreneur is obligated to maintain the health of
their employee which include promotive efforts, preventive efforts, curative
efforts, and rehabilitative efforts. Hopefully, this will help the efforts to achieve

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 a optimal level of employee’s health as the potential productive element of the
national development.
The Health Maintenance Insurance is not only provided for the respective
employee, but applicable to their families.
Considering that the worker’s social insurance is a cross-sectoral program with the
effort of increasing other social prosperity elements, the employment social insurance
program will be done step-by step and supportive to other community services efforts
in health, vacancy , safety and working hygiene.
Control and supervision of this Act, and its executive regulations will be done by the
Employment Control Officers as stipulated in the Act of the Republic of Indonesia
Number 3 of 1951 regarding the Establishment of Act of The Republic of Indonesia
Number 23 of 1948 regarding Employment Control and The Act of the Republic of
Indonesia Number 1 of 1970 regarding Occupational Safety

ELUCIDATION OF THE ARTICLES

Article 1
Point 1 through point 12
No explanation is necessary

Article 2
Social business or other non-profit organization that are treated as an enterprise are
foundations, associations, institutions and other business organization with dailty
organizer and hires employee.

Article 3
Point (1)
The implementation of the employment social insurances is conducted through
insurance mechanism to insure the solvability and liquidity to fulfill the applicant’s
rights and other obligations of the executive institution without disregarding its social
nature.

Point (2)
No explanation is necessary

Article 4
Point (1)

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By a working man performing a job under a job-relationship it is meant an individual
who is working under any type of business (Company) or an individual who receives
wages including daily laborer, lumpsum or a contract worker. In view that the social
welfare insurance is legally a worker’s right, the stipulation put an emphasis that the
company or individual employer must make the provision.

Point (2)
No explanation is necessary

Point (3)
No explanation is necessary

Article 5
No explanation is necessary

Article 6
Point (1)
See general definition

Point (2)
This regulation was meant to provide other employment social insurances that can be
given to the employee to increase protection and prosperity of the employee and their
families, such as the Working Termination Allowance Insurance program.

Article 7
Point (1)
Employees are face to social risk that may result in reduction of loss of income.
Therefore, the increase in employment protection is meant to provide peace and
insurance for the employee and their family.

Point (2)
No explanation is necessary

Article 8
Point (1)
No explanation is necessary

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Point (2)
Point a
An apprentice is a worker who in reality has not become a full pledged employee, but
already performs the duty with the company. Similarly, an undergraduate student
trying to complete their job practices with the company are also entitled for the
accident compensation if they are involved in an occupational accident.

Point b
A lumpsum worker who is not a business man is regarded as working for the
businessman who assign the lumpsum job to him.

Point c
A convict who is put to work at a certain company are to be covered with protection
with a social welfare insurance if he is involved in an occupational accident.

Article 9
Point a
No explanation is necessary

Point b
No explanation is necessary

Point c
No explanation is necessary

Point d
Allowance in cash form is given to the employee or their family. The allowance is
given regularly so that the employee or the family can sustained some of their
necessities continuously. The payment can also be given all at once to encourage a
more productive activity to increase their own prosperity.

Article 10
Point (1)
Other than the Entrepreneur, families, labor unions, colleagues and local community
are allowed to tell the occurement of accidents to the Manpower Department and the
Executive Institution.

Point (2)
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No explanation is necessary

Point (3)
No explanation is necessary

Point (4)
No explanation is necessary

Article 11
No explanation is necessary

Article 12
Point (1)
By the family left-behind, it is meant the wife or husband, any blood relationship
vertical up or down, to the second level, including legally adopted children.
In case there are no vertically up or down heirs, then the horizontal or parents in-law
relationship will be considered. For a worker who does not have a family, the death
compensation will be paid to those who received the Will from the deceased worker
or to the funeral company. In the case of an Apprentice or student, or lumpsum
workers, or a convict who died not because of an occupational accident, the family
left behind shall not receive any death compensation.

Point (2)
Point a
Funeral cost is the land cost, coffin, caffan, transportation and all costs related to the
funeral according to the custom, religion, and beliefs from where the deceased
belonged.

Point b
No explanation is necessary

Article 13
No explanation is necessary

Article 14
Point (1)
No explanation is necessary
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Point (2)
In the employee lost his/her life, the pension is paid regularly to the widow, or the
orphaned child. If the employee died before the pension can be given to the widow,
or orphaned either all at once or regularly. Orphaned is the child that were the
responsibility of the deceased at the time of his/her death.

Article 15
Certain participatory is the employee has reach at least 5 (five) years of participation.
The Pension Insurance based on certain parcipatory time can be given to the
employee who was terminated of their workmanship relation.

Article 16
Point (1)
The health maintenance effort includes promotive aspects, preventive aspect, curative
aspect, and rehabilitative aspect as a whole and inseparable element. But the Health
Maintenance Insurance is emphasizing on the curative and rehabilitative aspects
without disregarding the other two;

Point (2)
Point a
By outpatient of the first degree, it is meant any kinds of medical treatment given
during a First Aid medical treatment.

Point b
By outpatient of advanced degree, it is meant all kinds of individual medical
maintenance referenced to by the administrator of the first degree medical treatment.

Point c
By hospitalization, it is meant any kind of medical treatment administered by the
hospital in which the patient must stay for at least one day, based upon the reference
issued by the Medical Service Provider or other Medical Service Hospital.
Hospitalization Providers include:
1. Central or Regional State Hospitals
2. Designated Private Hospitals

Point d
By pregnancy observation it is meant medical assistance for normal delivery,
abnormal delivery and/or miscarriage.

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Point e
By supplemental diagnostics it is meant all kinds of observation that are required to
uphold a diagnose considered as necessary to support an advance outpatient
treatment and performed by the diagnostic department, hospital or special facilities
for the purpose, including:
1. laboratory observation;
2. radiology observation ;
3. other supportive diagnoses.

Point f
Services including special treatment are health maintenance that requires special
treatments for certain diseases and instrumentation for the body part to function
normally, including:
1. eye glasses;
2. artificial teeth ;
3. hearing aid;
4. artificial limb;
5. artificial eyes.

Point g
Emergency is a condition that requires immediate medical attention that may be fatal
to the victim..

Article 17
No explanation is necessary

Article 18
Point (1)
Family tree is an important evidence for determining the proper and rightful receiver
of the allowance or insurance. This is meant to insure that the insurance and
allowance not to fall into the wrong hands or unrightfully receiver.
The pay roll is needed to determine the amount of retribution and insurance or
allowance that is the employee’s right.
List of accidents is needed to determine the damage and frequency of the
occupational accident at the company and it is used for preventive measures and
insurance evidence.

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Point (2)
No explanation is necessary

Point (3)
No explanation is necessary

Point (4)
No explanation is necessary

Point (5)
No explanation is necessary

Point (6)
No explanation is necessary

Article 19
Point (1)
In line with the progress in the national development that bear an influence on the
community’s and business society’s ability in funding the worker’s social insurance
programme or their administrative capability, it is considered necessary to arrange for
a stage-wise participation in the programme.

Point (2)
Basically, every employee has the right for protection of the employment social
insurance. By staging the participation and the withdrawal of Act of The Republic of
Indonesia Number 2 of 1951 regarding the Establishment of Act of Occupational
Hazard No. 33/1947 of the Republic of Indonesia for all Indonesian Territory, there
will be employees who will not be covered and protected from the occupational
hazard risk (reque profesioneel). Considering that the risk of accident while working is
the responsibility of the company, therefore the Entrepreneur who has not participate
into the employment social insurance program shall remain obligated to take
responsibility of accidents suffered by their employees.

Point (3)
No explanation is necessary

Article 20
Point (1)
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Occupational hazard is a risk that should be a part of the Entrepreneur’s
responsibilities. Therefore, the cost of this entire program is charged to the
Entrepreneur, while the Employment Social Insurance emphasizes more the humane
aspects, whence the Entrepreneur is obligated to take care of their employee and their
family. Thus, the cost of health maintenance insurance and life insurance is charged to
the Entrepreneur.

Point (2)
No explanation is necessary

Article 21
No explanation is necessary

Article 22
Point (1)
No explanation is necessary

Point (2)
In the case of Entrepreneur who collected retribution from their employees, but failed
to give it to the Executive Institution in the given time, they will be subjected to a fine
based on a calculation of the percentage of the retribution and the payment delay.

Article 23
No explanation is necessary

Article 24
Point (1)
In order to give quick and fast service to the applicant, the Executive Institution will
conduct an immediate calculation and will give the insurance to their rightfull
receivant as soon as possible.

Point (2)
No explanation is necessary

Point (3)
If the Ministerial Decreed have not been issued, to insure the quick and fast service of
the employment social insurance, the employment control officer could established a
temporary list of accidents, the amount insurance after consultation with the
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appointed medical consultant. A medical consultant is a doctor, or medical officer
assigned by the Health Minister with recommendation and assigned by the Minister
for the purpose of this Act.

Point (4)
No explanation is necessary

Article 25
Point (1)
No explanation is necessary

Point (2)
The form of the State-Owned Company stipulated here is a Private Company
(Persero). Considering the coverage of the program and the vast number of applicant,
the employment social insurance program can be conducted by more that one State-
Owned Company when necessary.

Point (3)
Recalling that the Executive Institution of the Employment Social Insurance is
conducting a program to increase protection and prosperity of the employee and
whose fund comes from retribution and contribution if entrepreneurs and the
employees, the institution should put services to their applicants as their first priority,
without disregarding the principles of solvability, liquidity and rentability. Therefore,
the Executive Institution can fulfill its obligation and sustain itself as an enterprise
without being a burden to the national budget

Article 26
The 1 (one) month time is after the fulfillment of technical and administrative
requirements by the Entrepreneur and the respective Employee.

Article 27
Recalling that most of the funds that is managed by the Executive Institution comes
from the retribution and contribution of the Entrepreneur and their Employee, by
giving a role to the employee element, the entrepreneur element and the government
in conducting the Employment Social Insurance program, it will create a sense of
belonging and responsibility to further support the success of the program..

Article 28
The effort to secure the asset and investation of the Executive Institution should meet
the safety, profit, liquidity, diversification and unnecessary risk requirement.
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Considering that the Employment social insurance program concerns of the
employee, who mostly has low income, the effort of securing the institution’s assets
and investment should be guaranteed.

Article 29
Point (1)
No explanation is necessary

Point (2)
No explanation is necessary

Point (3)
No explanation is necessary

Article 30
No explanation is necessary

Article 31
Point (1)
No explanation is necessary

Point (2)
No explanation is necessary

Article 32
Excess of payment to the rightfull receivant as the result from miss calculation of the
Executive Institution or Employment Control Officer can not be returned under the
consideration of the receivant or their family socio-economy condition.

Article 33
Point (1)
By laws and regulations that organize the worker’s social insurance program it is
meant all laws and regulations that organize the Worker’s Insurance, Pension
Savings, that are associated with other previously arranged Life Insurance and
Worker’s Social Insurance and have been in existence so far.

Point (2)
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No explanation is necessary

Point (3)
By enactment of this Law, the Entrepreneur has delegated their responsibility over
their workers to a higher level and/or better worker’s social Insurance, and thus the
workers shall not be subjected to any possibility of losses.

Article 34
No explanation is necessary

Article 35
No explanation is necessary

State Gazette of The Republic of Indonesia Attachment Number 3468

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