Compliance with local regulations is a critical step for businesses operating in Indonesia. One of the key legal requirements is Mandatory BPJS Registration, as stipulated by Law No. 24 of 2011, Article 14. This law mandates that every individual, including foreign nationals working in Indonesia for at least six months, must participate in the national social security program.

Additionally, Government Regulation No. 5 of 2021, Article 175 Paragraph 4 (5)C, integrates the Business Identification Number (NIB) as a registration tool for health and employment social security. This integration highlights the importance of Mandatory BPJS Registration for newly established companies in Indonesia.

Understanding BPJS Registration

BPJS (Badan Penyelenggara Jaminan Sosial) is Indonesia’s national social security program, providing essential health and employment benefits. Complying with the requirement ensures your business aligns with Indonesian regulations while fostering trust with employees and stakeholders.

Steps for BPJS Registration

Step 1: Monitor BPJS Notifications

Once your company obtains its NIB, BPJS may send a notification email to the registered address. This email typically includes a deadline for completing the BPJS registration process. It is essential to meet this timeline to avoid non-compliance.

Step 2: Fulfill Registration Requirements

• For Companies Without Employees: If your business has no employees, BPJS requires the business owner (Director and Commissioner) to register.
• For Companies With Employees: Ensure all eligible employees are registered in compliance with BPJS regulations.

Step 3: Register Proactively

While you can wait for a notification, registering proactively demonstrates your commitment to compliance. Early action avoids last-minute challenges and ensures smooth operations.

Why Mandatory BPJS Registration is Crucial

Legal Compliance

By adhering to Law No. 24 of 2011 and Government Regulation No. 5 of 2021, your business avoids penalties and operates within legal boundaries.

Operational Continuity

Timely registration ensures no disruptions in your business processes or employee benefits.

Building Credibility

Complying with BPJS requirements reinforces your business’s reputation and dedication to adhering to Indonesian regulations.

Benefits of Early BPJS Registration

• Avoid Penalties: Ensure compliance with legal deadlines.
• Streamline Processes: Prevent delays in business operations.
• Show Dedication: Demonstrate your proactive approach to regulatory compliance.

Simplify BPJS Registration

For businesses in Indonesia, BPJS Registration is a vital step in establishing a strong legal and operational foundation. Whether you wait for a notification or register proactively, compliance ensures your business’s success and legal standing.

If you find the BPJS registration process complex or time-consuming, consider seeking professional assistance from a consulting firm. Experts can help navigate the BPJS registration process efficiently, ensuring that your business stays compliant with Indonesian regulations, saving you time and avoiding potential penalties.