No decision yet on severance fund manager: Ministry

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2 hours ago

Jakarta (ANTARA) – The Ministry of Manpower refuted claims that employers will be required to deposit severance pay reserves with Indonesia’s sovereign wealth fund, Danantara, stressing that the government has yet to appoint an institution to manage the fund.

Indah Anggoro Putri, the ministry’s Director General of Industrial Relations Development and Labor Social Security, dismissed claims circulating on social media as inaccurate.

“To date, the government has not decided on which institution will be tasked with managing reserves for severance payments,” she said in a statement cited in Jakarta on Sunday.

Putri was referring to provisions on the severance pay fund stipulated in Article 253 of Law No. 27 of 2026 on Labor Protection, noting that the regulation still requires implementing rules before it can take full effect.

With that in mind, she said the government had yet to finalize several technical aspects related to the implementation of the provision.

She added that the formulation of the required implementing rules would begin with public consultations involving stakeholders in the employment sector.

“We want to ensure that the implementing rules are drafted with due regard for both workers’ interests and business sustainability,” Putri said.

She further explained that the rules are expected to regulate the management mechanism of the severance reserve fund, including governance, funding sources, the designated managing institution, and accountability measures.

Workers and employers have been advised not to rely on or circulate unverified information regarding the severance reserve fund policy, she added.

Putri assured the public that the government would disclose further details of the policy once the implementing regulations are finalized.

“The Manpower Ministry is committed to ensuring that every employment policy is drafted in a transparent and accountable manner, while protecting workers’ rights and safeguarding business sustainability,” she said.