Employees’ Right to Register with Jamsostek and/or Social Security Organizer Agency (BPJS)

The Constitutional Court issued its Judgment No. 70/PUU-IX/2011 dated August 2, 2012 which now
allows employees register themselves with PT Jamsostek (Persero) as the organizer of the existing
employment social security (or “Jamsostek” in short in Bahasa Indonesia) under Law No. 3 of 1992
(the “Jamsostek Law”) and/or with the Social Security Organizer Agency (Badan Penyelenggara
Jaminan Sosial or “BPJS”) under Law No. 40 of 2004 (the “SJSN Law”).

The Court takes the view that the provisions of the Jamsostek Law and the SJSN Law which require
employers to register their employees with PT Jamsostek and BPJS respectively are insufficient to
secure the basic right of employees to the coverage under the Jamsostek program under the Jamsostek
Law or the national social security under the SJSN Law. The Court views that employees must have
the right to register themselves with PT Jamsostek and BPJS if their employers fail to register
themselves with PT Jamsostek or BPJS. Once the employees have registered themselves, their
employers must pay all the required contributions under the Jamsostek Law and/or the SJSN Law as