These are a list of articles published in external media.

Potential impacts of Indonesia’s social security reforms on the administration of social security institution

I visited one of the BPJS Employment (BPJS-TK) offices to learn about the implementation of social insurance programmes in Indonesia. BPJS-TK has different offices with various functions. This office is the first-class office, which is the largest branch office after the head office. The office has about 30 staff members, including 20 staff members working in the membership division and 10 staff members working in the service division. The service division staff members are divided into two groups: three officers provide front-end services, and the rest provide back-office support. Read more

Read more

In recent years, Indonesia has made significant strides in reforming its social security system, with a focus on enhancing protection for workers and their families. The Government of Indonesia (GoI) has introduced a series of policy measures aimed at addressing key challenges in the areas of unemployment protection, old-age income security, and maternity benefits. Read more

Read more

Bluebird Taxi is the biggest, most trusted and most famous taxi company in Jakarta. With millions of Bluebird Taxi on the road, it is impossible to avoid them and every foreigner visiting Jakarta is bound to take a Bluebird at least once. For expats stationed in Jakarta, Bluebird has become an everyday vehicle, and we always take a taxi for a short trip around the city. Read more

Extending social insurance coverage in Japan: The role of the labour and social security attorney system (Sharoushi)

Labour and Social Security Attorneys, known in Japan as “Sharoushi,” function independently, akin to solicitors, under the supervision of the Japanese Ministry of Health, Labour and Welfare. Their expertise lies in social insurance and labour issues. Japan has a community of 45,000 Sharoushi, and an annual national examination is conducted to recruit new members to this profession. This examination has a notoriously low pass rate of around 5%, marking it as one of the most challenging exams in the country.

The introduction of the universal health coverage scheme in 1961 was a significant milestone in Japan’s social insurance history, with Sharoushi playing a crucial role in its application. Initially, the insurance’s reach was limited, and expanding coverage, especially in establishments with voluntary participation like employment insurance, was difficult. While coverage for compulsory employment injury insurance was expanded, the uptake for voluntary employment insurance lagged. This period also witnessed a rise in unqualified consultants representing companies in social insurance and labour issues, leading to an increase in malpractice.

The Sharoushi system was established in 1968 to address these challenges. Sharoushi were instrumental in broadening their client base, thereby aiding the effective implementation of the law and expanding social insurance coverage.

Japan, akin to Indonesia, has a high proportion of small and medium-sized enterprises (SMEs), accounting for 99.7% of all businesses. Given the logistical impracticality for Hello Work’s 30,000 employees to visit over three million SMEs, Sharoushi have been pivotal in bridging the gap, especially in managing social insurance and labour complexities. During periods of economic boom, many SMEs struggled with accurate payroll recording—a critical element for calculating social insurance contributions. Sharoushi facilitated this by managing payroll calculations and premium collections, enabling SMEs to participate in social insurance schemes.

Moreover, with 3,000 Ministry of Health, Labour and Welfare employees qualified as labour standards inspectors, of whom approximately 2,200 are actively supervising labour standards, the task of monitoring over three million enterprises is daunting. Sharoushi complement this workforce by training companies in labour management, thereby preempting issues that could arise from labour standards inspections. They also play a vital role in public relations concerning social insurance and labour laws.

While solicitors and Sharoushi might seem to operate in similar spheres, they collaborate more than compete. Solicitors mediate in labour-management disputes, facilitating court processes when necessary, while Sharoushi focus on preventing disputes.

The Japan International Cooperation Agency (JICA) and the Federation of Labour and Social Security Attorney’s Associations have extended their support to Indonesia, aiming to establish a system akin to the Sharoushi. This has led to the creation of entities responsible for various insurances, which were later merged to form AGENALIS. Preparations are underway, under the auspices of the National Commission for the Accreditation of Vocational Qualifications, to establish a national qualification for Sharoushi in Indonesia.


Note: This article is based on a lecture by Mr Yoshihiko Ono from the Federation of Labour and Social Security Attorney’s Associations, delivered at a study workshop organised by the Indonesian Ministry of Manpower. The author bears responsibility for any typographical or factual errors.

Pension talk with Indonesian experts

I said to an Indonesian expert ‘my 97 year old grand father earns regular income every month’. Read more

Job losses and income security in Myanmar

Multiple shocks of COVID-19, the military takeover and a surging global price of food, oil and other commodities have significantly hit the lives of Myanmar people since 2020.

The post Job losses and income security in Myanmar first appeared on The Povertist.

Eight Ways to Create Fiscal Space for Social Protection in the Poorest Countries

International Labour Organisation (ILO) argues that the poorest countries can afford to finance social protection, and there are eight options to create fiscal space.

Does Africa Need Innovation or KAIZEN?

How Different are Innovation and KAIZEN? Innovation is Like a Lottery. KAIZEN is Invention Without Innovation.

Africa Needs to Do Innovation or KAIZEN?

How Different are Innovation and KAIZEN? Innovation is Like a Lottery. KAIZEN is Invention Without Innovation.

Social Policy and the Elimination of Extreme Poverty

“In middle-income countries, it may be that growth has lifted all the poor out of poverty who can be lifted; for the rest, social policy will be needed (Raj M. Desai 2015).” Thinking about approaches towards the goal of poverty elimination by 2030, this may be a sentence that we can cite to convince people who believe economic policies alone are enough. Here is some summary of my weekend readings as follows.

In The Last Mile in Ending Extreme Poverty, Desai wrote one chapter Social Policy and the Elimination of Extreme Poverty. He emphasises that social policy will play an essential role to end poverty, and political economy of social policy will be a key in developing countries.

Between 1990 and 2010, developing countries halved poverty headcounts to 22 percent, mostly thanks to improvements of labour-based income. However, this may not be the case for the next decades. According to evidence, the labour income effect on consumption diminishes in middle-income countries because the poorest people remain vulnerable.

Even so, he argues that the elimination of extreme poverty is technically possible with a combination of adequate social policies, but political economy will be a critical issue. Social protection systems with strict targeting mechanisms cannot gain critical support from nonpoor populations. It leads to the slow expansion of social protection. Instead, a comprehensive universal social protection system will most likely be sustainable with nonpoor supporters.

Desai concluded the chapter by addressing three points regarding the role of social protection in eliminating extreme poverty.

Inclusive Growth: A good mix of income growth and inequality reduction has an effect to reduce extreme poverty. Some literatures show increases in labour income are responsible for poverty reduction to 15 percent. Beyond this, social protection becomes a key player.

Institution Development: The development trajectories of institutional development for social protection were varied between welfare-state countries that industrialised before the twentieth century and low- and middle-income countries in this century even at the same level of income. The latter made a slower progress due to different conditions such as increased global competition, larger shares of workers in informal economies. It results in budget constraints and targeted programmes of social protection.

Lacking Universality: The exclusion of middle-income could lead to the political unsustainability. Historically, the group played a key role in scaling up social protection. The central obstacle is the domestic politics that affect the scale and duration of redistributive programmes because it potentially results in increasing or decreasing reputation of politicians and public officials.

Cross-class Solidarity: Towards the completion of the last mile, the social protection systems need to rebuild cross-class solidarity between the poor and the nonpoor, in order to build up well-functioning states in managing social protection. The donor community tends to prefer targeted programmes to reduce poverty. However, if the goal is to end poverty, developing countries need to have a more comprehensive system to manage risks and vulnerabilities.

Author: Ippei Tsuruga is the Editor-in-Chief and the founder of The Povertist. He has extensive experience and knowledge in poverty and social protection in Asia and Africa.