Prabowo Extends 50 Percent BPJS Work Accident Insurance Discount Until 2026
President Prabowo Subianto has extended the 50% discount on contributions for the Work Accident Insurance (JKK) program under BPJS Ketenagakerjaan until January 2026. The policy aims to support labor-intensive industries, protect workers, and sustain economic growth.
The extension is regulated under Government Regulation (PP) No. 36 of 2025, signed on September 4, 2025. Previously, the discount was only valid until July 2025 under PP No. 7 of 2025.
“The adjustment of JKK contributions and the recomposition of JKK contributions for the Job Loss Guarantee program shall be extended until January 2026,” states Article 10A of PP No. 36/2025.
Industries Covered by the Discount
The program is available to labor-intensive companies with at least 50 registered workers. Eligible sectors include food, beverages, and tobacco; textiles and garments; leather and leather goods; footwear; toys; and furniture.
The discount effectively reduces the JKK contribution rate across five levels of workplace risk categories:
- Very low risk: from 0.24% to 0.12% of monthly wages
- Low risk: from 0.54% to 0.27%
- Medium risk: from 0.89% to 0.445%
- High risk: from 1.27% to 0.635%
- Very high risk: from 1.74% to 0.87%
For example, a worker in the high-risk category earning USD 323 per month would see the employer’s JKK contribution reduced from USD 4.10 to USD 2.05.
Companies must settle their JKK dues by January 2026. If payments are delayed, they remain responsible for contributions until June 30, 2026, and late payments will incur a penalty of 2% per month, as stipulated in PP No. 44/2015.
Support for Informal Workers
The government also introduced a similar 50% BPJS contribution discount for informal workers (Bukan Penerima Upah/BPU), which includes ride-hailing drivers, couriers, and freelance workers.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the discount is part of a seven-stimulus package to strengthen the economy in late 2025.
“They only need to pay according to their chosen package. For example, the contribution becomes just USD 0.70 after the 50% discount,” Airlangga explained on September 15, 2025, as reported by Bisnis.
Currently, only about 200,000 informal workers have enrolled in BPJS Ketenagakerjaan programs. The government hopes the discount will boost participation to over 731,000 workers by the end of 2025.
Informal workers who register receive various protections. In case of a work accident, they are eligible for compensation up to 56 times their monthly wage. If a worker dies due to a workplace accident, their family can receive death benefits equivalent to 48 times the wage, plus a scholarship worth USD 11,225 for two children. Families also receive a death benefit of USD 2,710 under the Life Insurance program (JKm).
Informal workers can register for BPJS Ketenagakerjaan online via the official website or the JMO (Jamsostek Mobile) app, or offline through BPJS branch offices, PPOB partners, and community organizations. Required documents include a business permit, ID card, family card, and recent photograph.
The extension reflects the government’s strategy to protect vulnerable industries while ensuring workers’ welfare. “The incentive is aimed at maintaining purchasing power, accelerating economic recovery, and helping labor-intensive industries meet their obligations amid financial pressure,” the outlet reported.
By extending the JKK contribution discount, the Prabowo administration signals its commitment to both worker protection and economic stability, especially in industries that absorb millions of low- to middle-income workers across Indonesia.
Source: CNN Indonesia, CNBC Indonesia, Bisnis
Photo Credit: EqualStock IN (Pexels.com)
