Indonesia Manpower Law: Recent Developments On Old Age Benefit Program (Program Jaminan Hari Tua) And Possible Amendment To Recently Issued MoM Regulation 2/2022

On 2 February 2022, the Minister of Manpower ("MoM") issued MoM Regulation No. 2 of 2022 on Procedure and Requirement for Payment of Old Age Security Benefits ("MoM Regulation 2/2022"), which would initially come into effect on 4 May 2022, and revoke MoM Regulation No. 19 of 2015 on Procedure and Requirement for Payment of Old Age Security Benefits ("MoM Regulation 19/2015").

The issuance of MoM Regulation 2/2022 has caused many controversies in the majority of Indonesian workforce. They are against some provisions under MoM Regulation 2/2022, particularly Article 3 stating that the Old Age Security (Jaminan Hari Tua or "JHT") benefits can be collected by the Participants when they reach the age of 56 .