Indonesia's Trade Unions Unite to Demand Universal Social Security Reform

Millions of informal workers, migrant workers, maritime workers, platform workers and care workers remain outside meaningful protection, leaving them exposed to income shocks, illness and unemployment without safety nets.

Nine of Indonesia’s largest trade union confederations have signed a historic joint declaration calling for sweeping reforms to the country’s National Social Security System (SJSN), marking the first time major labour groups have united behind a shared platform for universal and sustainable worker protection.

The landmark commitment, announced in Jakarta on 26 February with support from the International Labour Organization (ILO), aims to expand coverage to millions of workers currently excluded from adequate social security — particularly those in the informal economy and vulnerable sectors.

Coverage Gaps Leave Millions Unprotected

Union leaders warned that Indonesia’s current social security coverage remains critically low. Only 31 percent of workers are active participants in the system, while participation among non-wage workers stands at just 6.8 percent — far below the ILO’s minimum benchmark of 50 percent.

Millions of informal workers, migrant workers, maritime workers, platform workers and care workers remain outside meaningful protection, leaving them exposed to income shocks, illness and unemployment without safety nets.

“This commitment marks an important momentum to expand coverage to all workers, including those in the informal economy and other vulnerable groups,” said Nunung Nuryartono, Chairperson of the National Social Security Council.

Seven-Point Reform Agenda

The joint declaration outlines seven major reform demands:

1. Universal coverage for both wage and non-wage workers, including maritime, migrant, care and platform workers.

2. Pension reform, introducing a mandatory basic pension for all citizens and strengthening Pension Insurance (JP) and Old Age Insurance (JHT).

3. Expanded Unemployment Insurance (JKP) to include contract workers and cases of involuntary resignation, alongside improved training and career counselling services.

4. New protections covering maternity leave, sick leave and long-term care within a revised SJSN Law.

5. Legislative amendments to the SJSN Law and the Social Security Administering Body for Employment (BPJS Ketenagakerjaan) Law, to be included in the 2026 National Legislative Program (Prolegnas).

6. Ratification of ILO Convention No. 102 (1952) on minimum social security standards.

7. Ongoing ILO support for legislative reform, implementation and alignment with international labour standards.

Government Signals Pension Expansion by 2030

Nuryartono welcomed the unions’ evidence-based approach and confirmed that the Government plans to begin implementing pension insurance for all workers — including non-wage earners such as platform and transport workers — starting in 2030.

The declaration is expected to be formally submitted to the Government, Parliament and other stakeholders as a policy reference for upcoming reforms.

Rare Unity Among Confederations

The agreement was signed by leaders of nine major confederations, including KSPSI-ATUC, KSPSI-Rekonsiliasi, KSPSI-Pembaruan, KSBSI, K-SBSI, KSARBUMUSI, KSPN, the Nusantara Trade Union Confederation and KASBI.

Elly R. Silaban, President of KSBSI, described the declaration as a collective labour voice forged through consultation and dialogue.

“Through the discussions and consultations we conducted with the support of the ILO, we were able to reach this agreement, particularly to ensure the expansion of coverage for all workers,” she said. “This commitment will serve as a recommendation and reference in formulating policies that benefit all people of Indonesia without exception.”

ILO Backs Inclusive Reform

ILO Country Director for Indonesia and Timor-Leste, Simrin Singh, called the initiative a “historic step” toward building a more inclusive and sustainable social protection system.

“Through its social protection programme, the ILO stands ready to continue supporting Indonesia in strengthening coverage, compliance and alignment with international labour standards, ensuring that no worker is left behind,” Singh said.

The declaration was live-streamed on ILO TV Indonesia, underscoring the high public profile of the announcement.

As Indonesia prepares its 2026 legislative agenda, the unified stance of the country’s leading labour confederations signals growing pressure for systemic reforms aimed at delivering universal social protection in Southeast Asia’s largest economy.