Extortion of People Under The Pretext of Social Security Act and BPJS Act

STATEMENT OF
HIZB-UT TAHRIR INDONESIA
On
EXTORTION OF PEOPLE UNDER THE PRETEXT OF SOCIAL SECURITY ACT and BPJS ACT

_____________________________

Social Security Agency (BPJS) was established based on Law Number 24/ 2011 On BPJS, which is a mandate of Law Number 40/2004 on National Social Security System (SJSN). In every country, social security is a very important element for people. This program is meant to ensure that people will get social welfare in the areas of health, employment, education and retirement. In reality, these laws regulate social insurance which will be under the coordination of Agency for Social Security. It is confirmed by the Law 40/2004 article 19, paragraph 1 which reads: Health insurance scheme is organized nationwide on the basis of the social principlesof insurance and equity. This goal is also mentioned in articles 29, 35, 39, and 43. All these articlesclearly mention that social security is organized on the principle of social insurance.
Article 17 paragraph (1), (2), (3) also states that participants must buy premium to protect themselves from social disasters. Furthermore, paragraph (2) of Article 17, which requires the employersto pick up part of the workers’ wages to be paid for the third party which,in fact, belongs to the Government.
The principle of social insurance is also reflected in Law Number 24/2011 on BPJS in which Article 1, letter g) and Article 14 and Article 16 states that BPJS holds national social security system based on the principle of mandatory participation. If it is insurance and of mutual aid (letter a of Section 4), then why it is mandatory for people to take part. It is also mentioned in letter b) on the non-profit principle. On the contrary, why the government seeksinvestment and the benefits (another term for seeking profits), which opens the possibility of loss.
Thus, based on the review of Law 40/2004 on Social Security and Law 24/2011 on BPJS, Hizb-utTahrir Indonesia assesses:  First, these two laws have fundamentally shifted the state’s obligation to provide social security to the hand of people, as well as to change social security into social insurance . Even though the meaning of ‘social security’ differs clearly from that of ‘social insurance’. Social security is the duty of the Government and it is the right of the people, whereas people must pay their own premium to participate in social insurance. It means that people have to protect themselves. In social security, health care is granted by the Government regardless their age and illness, while in social insurance the participants are limited in terms of age, profession or kinds of illnesses. In addition, the contract agreement of insurance is among unlawful agreements forbidden by Islamic law.
Second, the laws have turned the social rights of the people into a commodity business. The government deliberately createslaws to exploit its own people for the benefits of the insurance managers. It means that, if the social rights of the people is treated as a commodity business, the central position of the people is substantially reduced to be marginal residuals, while placing the business interests as a central point. This is very dangerous because it means that the state has put the fate of millions of people at stake to the market power.  In today’s era of economic globalization, the greediness of market is controlled by the global capitalist forces which would undermine the social rights of the people through the business of insurance agencies. It is already evident everywhere, that the multi-national insurance businessesare currently targeting the lucrative business opportunities in Indonesia which are made possible among others by Law 40/2004, Article 5 and Article 17, as well as Law 24/2011 Article 11 letter b which state that BPJS has the authority to place the social security funds for investment. This is a clear evidence of the influence of neo-liberalism that is now afflicting Indonesia.
Regarding this issue, Hizb-ut Tahrir Indonesia states:

1. Reject Law No. 40/2004 on State Social Security System (SJSN) and Law Number24/2011 on Social Security Agency(BPJS).
2. Demand the parties involved to cancel both laws because the laws will further burden the economic life of the people if they are enacted. People will only be the object of extortion under the guise of social security, so that the suffer of people is getting worse.

1. Affirm that only with the application of Islamic law under the framework of the Khilafah Rashidah will the state actually be able to improve the life of the people, and not make them as the object of extortion by any pretexts, as in the current capitalist system, since it is forbidden by Islamic law.

Spokesman of Hizb-utTahrir Indonesia

Muhammad Ismail Yusanto