Indonesia's Job Loss Guarantee programme

It is an employer's duty to ensure their employees are covered under the Job Loss Guarantee programme (or Jaminan Kehilangan Pekerjaan, JKP). Otherwise, they will have to pay cash compensation when unemployment occurs.

Indonesia's Ministry of Manpower (MOM), on 29 November 2021 (Monday), released an infographic on the government's unemployment benefit programme, Job Loss Guarantee (or Jaminan Kehilangan Pekerjaan, JKP), explaining what companies/employers must do to ensure their workers are a recipient of JKP.

According to a report by ASEAN Briefing, JKP is the Indonesian government's maiden unemployment benefit programme, and its key function is to provide cash stipends and training to the unemployed. Companies/employers who fail to ensure their employees are under the programme, have to pay cash compensation to the employee as a lump sum when unemployment occurs.

On that note, companies/employers with full-time employees are required:

  • To provide employment relationship data with its employees related to the employment relationship status of its employees;

Companies/employers, on the other hand, with contracted employees (Perjanjian Kerja Waktu Tertentu, or PKWT; Perjanjian Kerja Waktu Tidak Tertentu, or PKWTT) are required to:

  • Provide the number and/or start and end date of employment agreement for PKWT employees, and
  • Provide the number and/or start date of employment agreement or letter of appointment for PKWTT employees.

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Image / Ministry of Manpower's Facebook

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