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Policy Brief: Expansion Of Social Insurance For Employment Program: Efforts To Ensure Social Protection For Everyone Through Social Security
The right of every person to social security is a mandate of the 1945 Constitution and, since the 1960s the GoI has
embarked on developing a social security system. Initial coverage extended to civil servants, members of the military,
and police. Through enactment of Law No. 3/1992 on Social Insurance for Employment, the government later sought
to expand coverage of social security to private employees or formal sector workers. An important milestone was the
passage of Law No. 40/2004 on the National Social Security System (Sistem Jaminan Sosial Nasional: SJSN). This law aims
to integrate the previously fragmented social security programs and open opportunities for workers in the informal
sector to register in social security programs. This law also became the foundation for the formation of the National
Social Security Council (Dewan Jaminan Sosial Nasional: DJSN) that functions to formulate policy and synchronises the
implementation of SJSN.
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