chapter  8
13 Pages

Grassroots social security in Indonesia: The Role of Islamic Associations: Sirojudin and James Midgley


As in other countries, numerous grassroots mutual aid associations have been established in Indonesia. No reliable estimates of their numbers are available, but they are to be found all over the country in both urban and rural areas, and provide a modicum of social protection to many families. These organizations operate in parallel with the government’s formal social security system and the commercial insurance market. Unlike the formal system, grassroots mutual aid associations are usually small, have a minimum of rules and regulations, and are based on strong social networks of cooperation, reciprocity and trust. They are established, managed and governed by the people themselves, who are often members of the same extended family or clan, occupational group or local community.