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Exa: aseanbriefing.com
Exa: aseanbriefing.com
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppIndonesia's social security framework is administered by two state bodies: BPJS Ketenagakerjaan, which covers work accident insurance (JKK), death ben
Indonesia's social security framework is administered by two state bodies: BPJS Ketenagakerjaan, which covers work accident insurance (JKK), death benefit (JKM), old-age savings (JHT), and pension (JP); and BPJS Kesehatan, which provides national health coverage. Both are mandatory for all formal-sector workers in Indonesia, including expatriates holding valid work permits.
For BPJS Ketenagakerjaan, employer contributions are calculated as a percentage of the employee's monthly salary. The breakdown is as follows: JKK (work accident) ranges from 0.24% to 1.74% depending on the industry risk category; JKM (death benefit) is fixed at 0.30%; JHT (old-age savings) requires 3.70% from the employer and 2.00% from the employee; JP (pension) requires 2.00% from the employer and 1.00% from the employee, subject to a government-set salary ceiling that is revised periodically.
BPJS Kesehatan requires a contribution of 5% of monthly salary, with 4% paid by the employer and 1% by the employee. A salary cap applies — as of the most recent government regulation, contributions are calculated on a maximum base salary of IDR 12 million per month, meaning the maximum employer contribution for health insurance is IDR 480,000 monthly per employee.
Expatriate workers are legally required to enroll in BPJS once they hold a valid IMTA (work permit) and KITAS. In practice, many PT PMA companies delay or omit registration for foreign staff, either through misunderstanding of the rules or administrative oversight. Indonesia's Manpower Law and Government Regulation No. 44 of 2015 make enrollment non-negotiable for all qualifying employees regardless of nationality.
Sanctions for non-compliance are tiered. Initial violations result in written warnings. Persistent non-compliance can lead to suspension of public services to the company, including restrictions on obtaining business licenses, export-import permits, and government procurement contracts. In cases of deliberate evasion, criminal penalties under Law No. 24 of 2011 can apply to company directors personally, with fines and potential imprisonment provisions on the books.
BPJS compliance is one of the most consistently underestimated obligations we see in new PT PMA setups. The registration process appears straightforward on paper, but the interaction between employer
classification, salary caps, industry risk categories, and expatriate work permit timelines creates a compliance window that is easy to miss — especially for founders who are managing their own incorp
oration without local HR support.
What makes this particularly consequential in 2026 is the government's increasing cross-referencing of BPJS data with OSS (Online Single Submission) licensing records. Companies that are delinquent on BPJS can find their business license renewal or NIB update blocked without warning. For PT PMA companies in Bali operating in tourism, property, or services — sectors already under regulatory scrutiny — this is a material operational risk.
For our clients, the key question is not whether they need to comply, but whether their current payroll setup actually reflects the correct contribution rates, enrollment dates, and salary bases. We regularly find discrepancies during due diligence that predate our engagement by months.
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