President Joko Widodo has recently issued Presidential Instruction No. 2 of 2021 concerning Optimizing the Implementation of the Employment Social Security Program (Inpres 2/2021). Under Presidential Instruction 2/2021, the president instructs 19 ministries, two agencies, the Attorney General’s Office, BPJS Ketenagakerjaan, local governments (pemerintah daerah/pemda), and the National Social Security Council (Dewan Jaminan Sosial Nasional/DJSN) to optimize the implementation of the social welfare program.
The president, broadly speaking, instructs all ministries/agencies and local governments to undertake necessary measures according to their respective main tasks and functions to optimize the implementation of the employment social security program. Specifically for the Ministry of Finance, the president instructs the Minister of Finance to synergize the use of tax data with BPJS Ketenagakerjaan membership data.
The synergy of tax data and BPJS membership data seeks to improve taxpayer compliance in the context of optimizing the implementation of the employment social security program as per statutory provisions. Funding for the optimization of the employment social security program shall be borne by the State Budget (Anggaran Pendapatan dan Belanja Negara/APBN), Local Government Budget (Anggaran Pendapatan dan Belanja Daerah/APBD), and other legitimate and non-binding sources as per statutory provisions. This presidential instruction was issued on 25 March 2021.