The government respects efforts from public members to lodge a judicial review to the ministry’s regulation on old-age insurance to the Supreme Court as the dynamics of democracy, Manpower Minister Ida Fauziyah stated.

“The government respects efforts to lodge a judicial review to Ministry Regulation No. 2 of 2022 (on old-age insurance) as the dynamics of democracy,” Fauziyah noted in her statement received in Jakarta on Friday.

During a dialog for a podcast hosted by celebrity Deddy Corbuzier on Thursday (Feb 17), Fauziyah elaborated that as the regulation had been ratified and currently has the legal power, the ministry has the constitutional obligation to enforce the regulation until the Supreme Court verdict instructs otherwise.

She affirmed that the new regulation is enacted not for the government’s or the Workers Social Security Agency’s (BPJS Ketenagakerjaan’s) interests but for ensuring that residents would receive the full benefit of the old-age insurance program into which they have deposited for years.

Speaking in connection with the concern of payment failure when program participants claim the money after their retirement at the age of 56, the minister clarified that the deposit amount would be invested in a profitable investment scheme monitored by internal and external supervisors.

The external supervisors are the National Social Insurance Council (DJSN), Financial Services Authority (OJK), and State Audit Board (BPK), while the internal supervisors are delegated from groups of employees, employers, experts, the government, and internal control apparatus, she noted.

Fauziyah emphasized that the deposit would not be used by the government for other purposes, as the fund would be managed prudently in a transparent scheme and invested in a profitable scheme with a high return of investment.

“It is incorrect (that the fund would be used by the government). The old-age insurance fund is the worker’s rights and could be claimed while they enter their retirement age of 56, and with simple document requirement of an ID card and their insurance membership card to claim their money,” she remarked.

The minister also noted that the deposit could be withdrawn partially after at least 10 years of insurance membership. The withdrawable fund is capped to 30 percent to purchase a house and to 10 percent for other purposes to prepare for retirement, she added.

Source: Antara News