Government Regulation No. 6 of 2025 on the Implementation of the Unemployment Benefits System, as amended by Government Regulation No. 37 of 2021
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Government Regulation No. 6 of 2025 on the Implementation of the Unemployment
Benefits System, as amended by Government Regulation No. 37 of 2021
March 2025
One Asia Lawyers Indonesia Office
Koji Umai, Lawyer (Japan)
Prisilia Sitompul, Lawyer (Indonesia)
1. Introduction
On February 7, 2025, the Indonesian government enacted Government Regulation No. 6 of 2025 (“GR 6/2025”). GR 6/2025 amends Government Regulation No. 37 of 2021 on the Organization of the Unemployment Insurance Program /Jaminan Kehilangan Pekerjaan (“JKP”) Program. Under this regulation, employees who are dismissed by their employer will be entitled to receive sixty percent of their wages for up to six months.
2. Unemployment Insurance Program (JKP – Jaminan Kehilangan Pekerjaan)
The JKP system was introduced under Law No. 11 of 2020 (“Omnibus Law”), which was enacted in 2020 to protect unemployed workers. The details of this system were stipulated in Government Regulation No. 37 of 2021 (“GR 37/2021”). This system provides unemployment insurance, access to job vacancy information, and vocational training to Indonesian employees who meet certain eligibility criteria.
3. Key Points of the Revised JKP
(1) The revised JKP under GR 6/2025 includes key requirements:
- Enrollment in Social Security System: The participant must already be enrolled or newly registered in the workers’ social security system by their employer. (Art. 4.1)
- Citizenship and Age: The participant must be an Indonesian citizen, under 54 years old at the time of registration, and have an employment contract (PKWT or PKWTT). (Art. 4.2)
- Willingness to Work: Participants must be willing to return to work, whether as employees, self-employed individuals, or entrepreneurs. (Art. 19.2)
- Contribution Period: The participants must have paid at least twelve (12) months of BPJS Ketenagakerjaan contributions within twenty-four (24) months before dismissal. (Art. 19.3)
- Salary Cap: The maximum wage eligible for JKP benefits is IDR 5 million. If the last wage exceeds this amount, IDR 5 million will be used as the basis for calculation. (Art. 21.3 and 21.4)
- Benefit Percentage: Under GR 37/2021, benefits were 45% of wages for the first 3 months and 25% for the last 3 months. However, GR 6/2025 stipulates that participants can receive 60% of their wages per month for up to 6 months.
- In the case of company bankruptcy: Under GR 6/2025, it is stipulated that workers can still receive JKP benefits even if the company has failed to pay insurance contributions due to bankruptcy.
(2) Insurance Premiums
Under GR 37/2021, the insurance premium for the JKP program was set at 0.46% of the monthly salary. However, GR 6/2025 has reduced it to 0.36%.
3. Conclusion.
GR 6/2025 introduces the above revisions with the aim of maintaining the system while enhancing benefits for unemployed individuals. It is important for Japanese companies operating in Indonesia that employ Indonesian workers to understand the details of this system.
