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Abstract

Abstract

This study examines the role of Japan's Labor and Social Security Attorney, known as Sharoushi, in expanding social security coverage and ensuring the effective collection of insurance premiums and providing Human Resources Consultation. The Sharoushi system, alongside Japan’s labor insurance office associations, has significantly contributed to the inclusivity and sustainability of Japan's social security framework, especially for small and medium enterprises (SMEs). The study mainly analysis Sharoushi system and compares the Sharoushi system with Indonesia's similar professions, such as Perisai, Kader JKN, and Agenalis, which were inspired by Japanese models and implemented to support informal sector workers. This comparative analysis highlights the importance of intermediary professionals in bridging informational asymmetries, facilitating access to social security, and improving administrative efficiency. Drawing from institutional and practical perspectives, the study offers insights for other nations aiming to bolster their social security systems through qualification-based professional support. It underscores the Sharoushi's role in adapting Japan’s social security systems to broader, evolving needs, serving as a model for effective, inclusive coverage.

References

Reference

[1] “Sharoushi” is a professional qualification in Japan related to labor and social security, and was established in 1968 based on the “Social Insurance Labor Consultant Act”. Those who hold this qualification contribute to the improvement of the working environment for companies and employees and the expansion of social security coverage, by acting on behalf of companies in procedures related to the Labor Standards Act and social insurance systems, providing consulting on labor and social security, and supporting the resolution of disputes between labor and management. URL; https://www.shakaihokenroumushi.jp/en/tabid/296/Default.aspx (last viewed on October 1, 2024)

[2] The “Labor Insurance Administration Association System” is an organization that carries out administrative procedures on behalf of business owners of small and medium-sized enterprises in Japan to facilitate the procedures related to labor insurance (workers' accident compensation insurance and employment insurance). It was established in 1966 and is operated with the aim of reducing the burden on business owners and expanding insurance coverage, and it plays a role in promoting smooth enrollment in labor insurance and supporting management. URL; https://www.rouhoren.or.jp/system/ (last viewed on October 1, 2024)

[3] Under BPJS Ketenagakerjaan, professionals who promote the enrollment of labor insurance and pensions, and provide support for collection and procedures

[4] Under BPJS Kesehatan, professionals who promote the enrollment of health insurance, and provide support for collection and procedures

[5] Under BPJS Kesehatan, professionals who promote the enrollment of health insurance, and provide support for collection and procedures

[6] Social Protection Floors Recommendation, 2012 (No. 202) URL; https://normlex.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:3065524(last viewed on October 17, 2024)

[7] “Japan International Cooperation Agency (JICA) is a governmental agency that coordinates official development assistance for the government of Japan, aiming to promote economic and social growth in developing countries and contribute to international cooperation. JICA provides technical cooperation, financial assistance, and knowledge-sharing in various fields, including infrastructure, health, and social security.” URL; https://www.jica.go.jp/english/index.html　

(last viewed on October 1, 2024)

[8] “Labor and Social Security Attorney Act was created to legally recognize the fact that, in practice, people other than administrative scriveners were acting as agents for administrative agencies in administrative procedures related to social insurance law, labor law, and other labor regulations, which had previously been the exclusive domain of administrative scriveners. Although it cannot be said to be labor legislation in itself, the establishment of this system can be recognized as having the character of labor legislation in that it indirectly promotes the workers' receiving of their legitimate social insurance and labor law benefits. Akira Takafuji, 1982, “Some Recent Trends in Labor Legislation (4) Achievements of Private Member's Bills and Future Issues,” Journal of Social and Labor Studies, Faculty of Social Sciences, Hosei University, p.76

[9] Akira Takafuji, 1982, “最近の労働立法における若干の動向について(4)議員立法の成果と今後の課題” [Some Recent Trends in Labor Legislation (4) Achievements of Private Member's Bills and Future Issues,] Journal of Social and Labor Studies, Faculty of Social Sciences, Hosei University, p. 76

[10] Sharoshi Exam Official Site URL; https://www.sharosi-siken.or.jp/exam/　(Last viewed on October 17, 2024)

[11] George A. Akerlof 1970 “The Market for "Lemons" The Quarterly Journal of Economics, Vol. 84, No. 3. P.489

[12] Yukio Fukui, “不動産市場の変動とその要因” J [Journal of the Japan Real Estate Society] Journal of the Japanese Real Estate Society] Vol. 25, No. 3, 2011, pp. 6-14

[13] Kenji Agata, “職業資格の効用をどう捉えるか” [ How to Perceive the Utility of Professional Qualifications] Japanese Journal of Labor Studies”, No. 594, 2010, pp. 20-27

[14] R. H. Coase 1937 “The Nature of the Firm” Wiley p.390

[15] R. H. Coase 1937 “The Nature of the Firm” Wiley p.390

[16] R. H. Coase 1937 “The Nature of the Firm” Wiley p.391

[17] (Cooperation with administrative agencies) Article 25-46 The Minister of Health, Labor and Welfare and other administrative agencies may request the cooperation of the Japan Federation of Labor and Social Security Attorneys in matters such as public relations, surveys and other necessary matters in order to ensure the smooth implementation of this Act and the various labor and social insurance laws.

[18] Normally, company owners are not workers, so they cannot join workers' accident insurance. However, by applying for special enrollment and requesting Jimukumiai to handle the procedures, even company owners can pay workers' accident insurance premiums and join workers' accident insurance. Since small and medium-sized company owners often engage in dangerous work at factories and other workplaces, this system allows them to join workers' accident insurance by paying workers' accident insurance premiums even as company owners.

[19] Summary of a written interview with Agus Susanto, CEO of the former BPJS Ketenagakerjaan, on October 5, 2024; Motivation for Launching Perisai: The goal was to create a sustainable system for enrolling informal workers in BPJSTK since they typically lack formal employment contracts. Perisai was designed to organize these workers as participants.

Inspiration from Sharoushi and Jimukumiai Models: The Sharoushi and Jimukumiai models were used as benchmarks, as they align with BPJSTK's objective to expand coverage for informal workers. Since BPJSTK has limited staff and offices, adopting a model like Sharoushi, where educated local representatives work with integrated technology, was ideal.

Need for Expansion: The state mandated BPJSTK to achieve universal coverage, but only 40% coverage had been reached, highlighting the need for a strategic model like Perisai to cover workers across diverse regions.

Problems with Previous Agents (Wadah): Wadah faced issues due to lack of selection and training

Meaning of Perisai: “Perisai” stands for “Perlindungan Jaminan Sosial Indonesia” (Indonesian Social Security Protection), symbolizing a protective shield familiar to Indonesian culture, aimed at providing social security for workers.

Achievement of Initial Goals: Perisai successfully met its acquisition goals, increasing the number of informal participants from 300,000 to 3 million in two years, surpassing the target.

Future Development: Perisai needs improvement in technology, higher recruitment standards, better training, attractive remuneration, an expanded scope (including the formal sector), and stronger governance to manage risks.

[20] Date of survey: October 8, 2024, BPJS Ketenagakerjaan Deputy of Membaership and Agency Pertnership

[21] October 17, 2024 BPJS Kesehatan Direktur Kepatuhan dan Hubungan Antar Lembaga Pak Mundiharno Written Interview Summary: Motivation for Launching Kader JKN: The Kader JKN program was created to address three main challenges in Indonesia's JKN program: premium collection , membership expansion, and facilitating healthcare access. Due to limited BPJS Kesehatan staff, community-based Kader JKN agents were recruited in 2017 after a pilot program in 2015-2016. Concepts from Japan's Sharoushi and Jimukumiai models helped shape the Kader JKN model.

Inspiration from Sharoushi and Jimukumiai Models: Kader JKN combines elements of commercial insurance agents and social workers. Although Kader JKN performs functions similar to Japan's Sharoushi, such as collecting premiums and registering participants, it operates with lower educational requirements and provides limited advocacy functions.

Challenges in Expanding Social Security: Indonesia faces high unemployment, low wages, and a large informal workforce, making it difficult to expand JKN coverage. Many informal workers are mobile and unorganized, so Kader JKN, rooted in local communities, can reach and serve these workers better than BPJS staff alone.

Issues with Premium Collection: From the start, JKN faced deficits because the premium rates were set lower than healthcare costs. Many informal workers enrolled, used healthcare services, then stopped paying premiums, leading to high default rates. Kader JKN agents were tasked with collecting premiums in person to improve the collection rate.

Meaning of “Kader JKN”: Launched in 2017, “Kader” was chosen over “Agent” to emphasize the social bond between Kader JKN agents and participants, fostering community-based support beyond mere functional collection tasks.

Success in Meeting Initial Goals: Kader JKN has been effective in premium collection and registration, especially in densely populated areas. However, challenges remain in sparsely populated areas, where high transportation costs hinder collection efforts.

Future Development for Kader JKN: To meet Indonesia's vast coverage needs, Kader JKN must grow, ideally developing into a respected profession similar to Sharoushi in Japan. Increasing the number of agents and establishing higher professional standards are necessary for sustained program expansion.

Specialization in Premium Collection: Kader JKN agents focus on collecting premiums from participants who are over six months overdue. For participants less than six months overdue, tele-collection staff handle the task initially, passing cases to Kader JKN if needed. This dual approach ensures comprehensive premium collection efforts.

[22] Mizuno, Kosuke, 2019, “東南アジアにおけるケアの潜在力” [The Potential of Care in Southeast Asia,] Kyoto University Press, p.143

[23] Summary of written interview with DJSN Commissioner Indra Budi Sumantoro on October 7, 2024; Motivation for Launching Agenalis: Agenalis integrates two social security agencies, Kader JKN and Perisai, to boost membership numbers for informal sector workers, who make up 60% of Indonesia's workforce. The goal is to meet the 2025 membership targets of 98% for BPJS Health and 43.19% for BPJS Employment, as outlined in Indonesia's Long-term Development Plan.

Benchmarking with Sharoushi and Jimukumiai Models: Agenalis draws on the Sharoushi and Jimukumiai models for ensuring social security coverage for self-employed and small business employees. It adopts Jimukumiai's agent system for covering self-employed workers and Sharoushi's fee structure for consultations.

Challenges with Informal Sector Coverage: Indonesia's growing informal sector, accelerated by the 4th Industrial Revolution and COVID-19, presents challenges in social security coverage. With many informal workers as inactive members, there's a need to distinguish between those unable to pay (for whom the government should take responsibility) and those unwilling to pay, who should continue their membership.

Problems Before Agenalis: The separate agency systems of Kader JKN and Perisai were inefficient in covering informal workers under both health and employment social security programs. Integration into Agenalis addresses this issue.

Meaning of Agenalis: Agenalis stands for “Professional Activator Expert of Social Security,” representing the integration of Kader JKN and Perisai. The name resulted from consensus among DJSN council members and was formalized through DJSN Regulation No. 2 (2020) and a decree from the Manpower Ministry.

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