Friday, July 3, 2015

Indonesia: Workers protest against a modification of the regulation governing the public provident fund

Starting on July 1, 2015, the Government of Indonesia introduced a new public pension scheme and some modifications of the regulation governing the public provident fund.

Under the previous regulation, workers had the possibility to withdraw the full amount of the money accumulated after 5 years of contribution, to start a new business for instance. The new regulation modified this rule:

“After 10 years they will be allowed to access 10 percent of funds for miscellaneous necessities and an additional 30 percent for housing.” summarized Manpower Minister Hanif Dhakiri, quoted by thejakartaGlobe.

The change is presented by the government as being more in line with the idea of Old-age protection approach which is behind this type of scheme.

However there is... Read More