This thesis’ title is “Sanction Application Implementation for Companies That Do Not
Engage Employees in Social Security Program of BPJS Employment in Yogyakarta”. This study
aims to find and review the implementation of sanction application for companies which do not
engage their own employees in Social Security Program of BPJS Employment in Yogyakarta,
also to find out and propose a renewal of law approval in sanction for companies which do not
engage their employees in Social Security Program of BPJS Employment in Yogyakarta. This
study is an empirical legal research with sociology of law as an approach, constitutional
approach and political law approach. Data sources are divided into primary and secondary data
which consist primary and secondary material. The research is located in Yogyakarta. This study
has population of 600 companies and five companies as samples by using purposive sampling
method. Data collection method is obtained from literature review and interview. This study has
data analysis method which consist primary and secondary data to be concluded with inductive
reasoning process. This study uses Theory of Establishment Clause and Utility Theory which
purposed to study the research’s findings. The findings show that sanction application for
Companies that Do Not Engage Employees in Social Security Program of BPJS Employment in
Yogyakarta do not work effectively since there are some obstacles exist. BPJS Employment and
Services that have authority in giving sanction did not act based on the mechanism ruled in
Constitution. Renewal of law in sanction for companies is needed to change or to create a
revision of Law No.24 of 2011 on Social Security Agency, to make additional rules in form of
government regulations, to commit a cooperation agreement between BPJS Employment and the
PTSP in Companies’ Duties which demand a business permit must attach proof of BPJS
Employment membership and make cooperation agreements between BPJS Employment with
Education Authorities and between BPJS Emplyment with Private Higher Education
Coordinating, also Ministry of Research Technology and Higher Education to provide sanction
in form of public service repeal for institutional companies which run in education field.