Abstract
This chapter reviews social security development in Indonesia, which has evolved from providing very little in its early years, to a system that benefited only formal sector workers, to universal coverage. There are two important milestones in this development. First, starting in the mid-1960s, the New Order government gradually developed various social security schemes, albeit limited to the formal sector. Second, after the Asian financial crisis towards the end of the 1990s, a stronger social security system was established by adopting legislation for universal coverage. The challenges for implementing it, however, remain formidable due to Indonesia’s vast geography, large population and diversity in availability and quality of infrastructure.
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Notes
- 1.
While slowly recovering from the impact of the crisis, Indonesia had to deal with the increase in global fuel prices, which had led the government to gradually slash its fuel subsidy, starting in 2005. This resulted in an average of a 30 percent and a 114 percent increase in fuel prices in March and October 2005, respectively. In this period, the social protection schemes were designed to compensate the poor for the impact of the fuel subsidy reduction.
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Suryahadi, A., Febriany, V., Yumna, A. (2017). Expanding Social Security in Indonesia: The Current Processes and Challenges. In: Yi, I. (eds) Towards Universal Health Care in Emerging Economies. Social Policy in a Development Context. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-53377-7_14
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