Updated Requirements And Procedures On Old-Age Benefit Program

The Minister of Manpower ("MOM") recently issued a new regulation governing the Old-Age Benefit (Jaminan Hari Tua  or "JHT") Program, i.e., MOM Regulation No. 2 of 2022 dated February 2, 2022 on Procedures and Requirements for the Payment of the Old-Age Benefit Program ("Regulation 2/2022"). Regulation 2/2022 will be effective from May 2, 2022 and revokes MOM Regulation No. 19 of 2015 dated August 19, 2015 ("Regulation 19/2015") on the same matter.

The JHT Program is one of several social security programs under the Employment Social Security (the "BPJS Ketenagakerjaan"). The JHT Program will be given in a form of cash, when a JHT Participant reaches the retirement age, passes away, or suffers from permanent disability. In this regard, a JHT Participant is every employee, including a foreign worker who has worked for at least 6 (six) months in Indonesia and who already paid the premium.