Jayapura, Papua (ANTARA) - The South Papua provincial government is moving to expand mandatory employment social security coverage through Indonesia’s state insurer BPJS Ketenagakerjaan, as participation in the eastern region remains among the lowest nationwide.Head of the South Papua Manpower, Transmigration, Energy and Mineral Resources Agency Lemberthus Ignasius Fatruan said the administration has issued Governor Regulation No. 11 of 2024, providing a legal framework to accelerate enrollment in the employment social security program.
“We have also launched employment social security protection for non-wage workers in South Papua,” Fatruan said in a statement received in Jayapura on Monday, referring to informal and self-employed workers who make up the bulk of the province’s labor force.
The provincial government has allocated Rp1.5 billion ($97,000) in its 2025 budget to fund coverage for more than 7,400 non-wage workers, Fatruan said, part of a broader effort to reduce vulnerability among informal laborers.
For businesses, the provincial wage council has set South Papua’s minimum wage at about Rp4.5 million per month, up from Rp4.285 million previously, an increase of around 0.5 percent, he added, aimed at balancing worker protection with business sustainability.
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Despite the policy push, coverage remains limited. BPJS Ketenagakerjaan’s regional head for Bali, Nusa Tenggara and Papua, Kuncoro Budi Winarno, said South Papua’s employment social security participation is still far below national targets.
“As of November 2025, Universal Coverage Jamsostek in South Papua has only reached 24.24 percent,” Kuncoro said, underscoring the scale of the challenge facing local authorities.
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He estimated that more than 100,000 workers in the province remain outside the BPJS Ketenagakerjaan system, leaving them without formal protection against workplace accidents, death or old-age risks.
Of those uncovered workers, around 19,800 are employed in the formal sector, while roughly 80,000 work in the informal economy, Kuncoro said, highlighting the need for targeted outreach and incentives to boost enrollment.
The provincial government says it will continue coordinating with BPJS Ketenagakerjaan and employers to close the gap, positioning expanded social security as a key pillar of South Papua’s labor and welfare policy.