June 2026
11Jun

Indonesia: OECD delegation commends reform measures in insurance and pension fund sectors

The Organisation for Economic Co-operation and Development (OECD) has commended the various reform measures being implemented by the Financial Services Authority (OJK) in the insurance and pension fund sectors to strengthen financial sector resilience, enhance consumer protection, and encourage healthy and sustainable industry development. A statement released by the OJK said that the remarks were made by Mr Pablo Antolín, Head of Insurance and Pensions at the OECD, who is on a fact-finding mission. The OECD visit, from 5th to 11th June,...

June 11, 2026
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May 2026
15May

The Paradox of Pensions in an Aging Society

South Korea will enter a super-aged society in December 2024, when the population aged 65 and older exceeds 10 million, accounting for more than 20% of the total population. This shift has occurred 2 to 3 years earlier than previously projected for 2027. The proportion of elderly individuals is expected to reach 30% by 2036 and exceed 40% by 2050. With an average life expectancy projected to be 88.6 years by 2050, many retirees may face nearly 30 years...

May 15, 2026
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14May

Indonesia:The newest member of group of ageing Asian nations

Indonesia is now officially an ageing nation, according to the 2025 Intercensal Survey (SUPAS) published by Statistics Indonesia (BPS). The survey published on 12 May 2026 reveals that the percentage of the elderly population has climbed to 11.97%, breaching for the first time the 10% threshold used to differentiate between a young population and an ageing one. The exercise conducted every five years found that the elderly population share has continued to climb in each of the surveys. The ageing population...

May 14, 2026
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March 2026
17Mar

UGM Expert Warns Pension Coverage in Indonesia Remains Limited

The Ministry of Finance projects that around 100 million Indonesians may face retirement without pension savings by 2038. This condition is considered a serious alarm for the national labor system. Several factors contribute to the public’s lack of pension savings: most people set aside only about 3 percent of their income, whereas financial security standards recommend at least 10 percent. Meanwhile, the current pension security scheme still has limited coverage, particularly for the informal sector. As a result, many people...

March 17, 2026
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September 2025
11Sep

Prospective elderly residents in Indonesia are vulnerable to poverty.

The number of individuals aged 30 to 50 years, or potential elderly, in Indonesia reaches approximately 87.7 million people. About one-third of them are actively working and earning low wages. Their median wage is only two-thirds of the average wage/salary of workers, employees, and civil servants in Indonesia, which amounts to Rp 3.09 million per month. The Deputy Head of the Central Statistics Agency (BPS), Sonny Harry B Harmadi, stated on Tuesday (26/8/2025) that such groups are generally located in...

September 11, 2025
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July 2025
11Jul

Addressing the Challenges for Asset-backed Pensions in Indonesia

By Organisation for Economic Co-operation and Development This report assesses the challenges to ensuring adequate benefits in retirement for the Indonesian population. The design of the asset-backed pension system aims to help individuals to accumulate resources to finance their retirement. However, the rules of the system may not help achieve the desired objectives, appropriate schemes or vehicles may not always be available and individuals may not necessarily make use of those available. This can lead to retirement savings gaps that...

July 11, 2025
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September 2024
09Sep

Outrage Over Pension Cuts in Indonesia: Key Insights on Contributions and Withdrawal Options

New Pension Program Will Cut Employee Salaries: What You Need to Know The implementation of a new pension program will lead to salary deductions for workers. This mandatory contribution aims to enhance retirement benefits. However, many employees are worried about the impact on their take-home pay. Labor unions are actively voicing their opposition, especially in regions like South Kalimantan. They argue that the additional deductions will strain workers’ finances. Warning! The new pension deductions may significantly affect workers’ salaries. Employees should prepare...

September 9, 2024
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October 2023
20Oct

Indonesia. Minister instructs to form joint secretariat for serving elderly

Coordinating Minister for Human Development and Culture Muhadjir Effendy instructed the related deputy to form a joint secretariat to support services for the elderly. "I ask the related deputy to make a joint secretariat in this office to provide all elderly services," he stated in a seminar held at the ministry's office in commemorating International Day for Older Persons here on Friday. Muhadjir underscored the need for a representative joint secretariat to support the government's preparations for facing the aging population. He...

October 20, 2023
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February 2022
11Feb

Extending pension policy in emerging Asia: An overlapping-generations model analysis for Indonesia

By George Kudrna, John Piggott & Phitawat Poonpolkul This paper examines the economy-wide effects of government policies to extend public pensions in emerging Asia - particularly pertinent given the region’s large informal sector and rapid population ageing. We first document stylized facts about Indonesia’s labour force, drawing on the Indonesian Family Life Survey (IFLS). This household survey is then used to calibrate micro behaviours in a stochastic, overlapping-generations (OLG) model with formal and informal labour. The benchmark model is calibrated...

February 11, 2022
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January 2021

Investing in People : Social Protection for Indonesia’s 2045 Vision

By Holmemo, Camilla Acosta, Pablo, George, Tina Palacios, Robert J. Pinxten, Juul Sen, Shonali, Tiwari, Sailesh The Government of Indonesia's Vision for 2045 sets an ambitious path that will require significant investments in human capital and social protection Indonesia continues to set ambitious goals for its growth and development. The Government of Indonesia's (GoI) vision for 2045—when the country celebrates 100 years of independence—is to achieve high income status and reduce poverty to nearly zero. In addition to sustained...

January 14, 2021
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