When a promising software engineer in Jakarta received two job offers—one from a multinational company offering only the statutory BPJS benefits, and another from a local startup that provided health insurance top-ups, flexible work, and learning allowances—the decision was easy. The second offer felt more human-centric and competitive.

In Indonesia, BPJS Kesehatan (healthcare) and BPJS Ketenagakerjaan (social security) are mandatory. However, relying solely on BPJS is no longer sufficient to attract or retain high-caliber talent, especially Millennials and Gen Z, who value holistic well-being and career growth.

Legal Framework

The Indonesian labor law requires employers to enroll employees in BPJS. Beyond this, additional benefits—such as private health insurance, wellness programs, housing or transportation allowances—are not legally mandatory but increasingly common in competitive industries.

Real Case in Indonesia

A leading e-commerce giant in Indonesia, Tokopedia, successfully boosted retention by offering not just BPJS, but also mental health support, remote work options, and professional development stipends. This differentiated them from competitors still offering only the legal minimum.

Best Practices for Foreign Employers

• Enhance Health Coverage: Provide private insurance that complements BPJS.
• Support Work-Life Balance: Offer flexible hours, hybrid work, or wellness days.
• Invest in Career Growth: Learning budgets, mentorship, and international training.
• Family-Friendly Benefits: Childcare assistance, parental leave top-ups.
• Cultural Alignment: Adapt packages to local values, such as religious holiday allowances (THR).

Conclusion

Beyond compliance, well-designed benefit packages are a strategic tool. They communicate respect, support, and long-term investment in employees, positioning employers as top choices in Indonesia’s competitive talent market.

References

• Indonesian Law No. 24/2011 on BPJS
• Ministry of Manpower Regulation No. 6/2016
• Tokopedia HR Practices Report, 2022