The political economy of social protection reforms in Indonesia

The Asian financial crisis of 1998 hit Indonesia particularly hard. It had disastrous consequences for the socio-economic situation of the majority of the population. The crisis led to economic collapse, rising prices, and increased the poverty rate by 30 per cent. Only a relatively small group of formally employed people enjoyed comprehensive social security coverage, including coverage for illness, old age, work-related accidents and death. Although the right to social security for all is enshrined in the constitution, the majority of the population was left without protection.