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  • Report
  • 19th Oct 2018

Reducing Social Security Contribution Arrears in Indonesia

A large proportion of companies registered with BPJSTK have contribution arrears at some point during the year. This puts employees at risk because they would not be covered by BPJSTK’s insurance in the event of an accident. It also lowers the contributions made towards their pensions. We tested the effectiveness of different email interventions to improve companies’ payment behaviour. An email outlining the risk of prosecution associated with contribution arrears led to a 2.6 percentage point increase in the likelihood of a company making a payment before the monthly deadline. It also brought forward an estimated USD 715,000 in arrears repayments. 

You can find more information on the partnership here.

Partner organisation: BPJS Ketenagakerjaan (BPJSTK) – Indonesian social security agency for the labour force.