Social Security Provision for International Migrant Workers: Comparing Indonesia and the Philippines

Abstract

Despite migrant workers’ contribution to economic development, their social security protection remains inadequate. This article examines social security provisions for Indonesia’s international migrant workers and compares them with another labor-sending country, namely the Philippines using a desktop study. The Philippines is interesting to discuss due to their recognition as role model in managing labor migration and providing excellent social security protection for their national abroad. The purpose of this thesis is to answer the research question on how do Indonesia and the Philippines manage social security programs for their international migrant workers? What can Indonesia learn from the Philippines? This study demonstrates that both countries have implemented several schemes to protect migrant workers. Indonesia has provided a range of social security programs with the operation of a special insurance scheme under BPJS Ketenagakerjaan. The Philippines has covered their migrant workers through social insurance schemes under SSS, OWWA, and PhilHealth. The Philippines also complements its national scheme with bilateral social security agreements. It is concluded that Indonesia’s social security protection for migrant workers is still lagging behind the Philippines. Indonesia is considered inadequate to extend the protection for their nationals abroad due to a lack of bilateral social security agreements with receiving countries, which eventually hinders the portability of benefits for the migrant workers. While bilateral social security agreements are significant instruments for the Philippines ensure overseas Filipino workers acquire appropriate social security benefits in the receiving countries and enjoy the portability of social security benefits.