Governance of the Claim Process for Cash Benefits for Job Loss Insurance after Government Regulation Number 6 of 2025: A Case Study at the Cimahi Branch of BPJS Employment

Abstract

The Job Loss Insurance program was strengthened through Government Regulation No. 6 of 2025, which increased the cash benefit to 60% of the worker’s last wage for a maximum period of six months. This study aims to describe and analyze the governance of the JKP cash benefit claim process at the Cimahi Branch Office of BPJS Ketenagakerjaan following the enactment of the regulation, amid the increasing number of employment terminations in West Bandung Regency. This study employed a qualitative approach using a case study design. Data were collected through in-depth interviews with four internal informants from the Cimahi Branch Office of BPJS Ketenagakerjaan and two workers who had been laid off and were JKP participants, as well as non-participant observation and document analysis. The data were analyzed using the Miles and Huberman interactive model. The governance of the claim process was assessed based on the United Nations Development Programme (UNDP) governance framework and five good governance principles: transparency, accountability, responsiveness, effectiveness and efficiency, and equity. The findings indicate that efforts have been made to implement all five principles, although their levels of implementation vary. The documentation of the basis for claim decisions represents the strongest aspect, while the mechanism for early reporting of planned mass layoffs by companies to the BPJS Ketenagakerjaan branch office remains informal, potentially placing an unexpected burden on the branch office’s service capacity. Both participant informants perceived the cash benefit as helpful in maintaining purchasing power during the transition period following job loss. However, both experienced differences between the actual disbursement process and their initial expectations regarding its duration, which may have been influenced by differences in the time period calculated by the participants compared with the internal service time standards of BPJS Ketenagakerjaan. This study recommends strengthening interinstitutional coordination in reporting employment terminations and providing participants with more transparent information regarding standard service times.