Starting 2025, Retirement Age For Workers In Indonesia Can Reach 59 Years
JAKARTA Starting in 2025, the retirement age limit in Indonesia will increase from 58 years to 59 years. This policy is regulated in Government Regulation (PP) Number 45 of 2015 concerning the Implementation of the Pension Security Program.
However, the increase in retirement age will not stop at that figure. The government, through the Ministry of National Development Planning (PPN)/Bappenas, plans to increase gradually until it reaches the retirement age of 65 years.
The gradual increase in retirement age to reach the age of 65 years is stated in the 2025-2045 Draft Final National Long-Term Development Plan (RPJPN) document, which was released on Wednesday, January 8.
This step aims to adapt the pension system to changes in the demographic and socio-economic needs of the community. The government will implement this plan in stages, taking into account social, economic, and public health aspects into account.
Some of the strategies designed to support this policy include:
- Expansion of pension guarantee coverage, so that more workers are protected. - Education throughout life, in order to increase the competitiveness of the workforce at productive age. - Improve the quality of health services, to ensure productivity and welfare of workers. - Development of an elderly friendly environment, so that the elderly can remain active and contribute.
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In addition, the roadmap contained in the 2024-2028 Indonesian Pension Fund Development and Strengthening **Roadmap also supports the direction of this policy. The document, compiled by the Financial Services Authority (OJK) with industry players in the pension fund, targets:
1. Pension funds as a source of long-term financing, support national economic growth. 2. Increase in pension funds by 60% from GDP in 2045. 3. Growth in the number of pension fund participants through education and incentives. 4. Increase in retirement age to reach 65 years in 2045.
With this change, the government hopes to create a more sustainable, inclusive, and supportive pension system for workers to the elderly.