I
nformal workers in Indonesia have limited access to social protection
programs, particularly health and unemployment insurance. This study
assesses the current status of, and gaps in, social protection for informal
workers, and provides recommendations for closing these gaps.
The study reveals that participation in social protection programs by informal
workers in micro, small, and medium-sized enterprises (MSMEs) is relatively
low. The inability to pay insurance premiums, lack of national identity cards,
low awareness of and knowledge about registration procedures, and poor
coordination in enforcing existing legislation are major obstacles to expanding
social protection for informal workers in Indonesia.
This study has four key recommendations: (i) improve awareness of social
protection program benefits among employees and MSMEs, (ii) simplify
requirements for registration procedures and collection of contributions,
(iii) create a mechanism for flexible payment of premiums for health and
unemployment insurance, and (iv) improve the financial and institutional
capacity of MSMEs to provide decent work with social protection programs for
their employees.