Silver Economy Could Be a New Growth Engine When the Demographic Bonus Ends

Illustration. (Photo: Dok. Antara)

BALI - Bank Mandiri Taspen President Director Panji Irawan assessed that Indonesia must begin to shift the focus of economic development from demographic bonuses to the development of silver economy as the number of elderly people (elderly) increases.

According to Panji, Indonesia is now entering a phase of demographic structure change, characterized by an increasing proportion of the population aged 60 years and over.

This condition can no longer be seen as an economic burden, but rather an opportunity to create new sources of growth.

"Senior citizens should no longer be positioned as a burden of economic dependence. They are a new economic force that has purchasing power, assets, experience, and are still productive," said Panji.

Based on data from the Central Statistics Agency (BPS), the proportion of the elderly population has reached 11.97 percent of the total population of Indonesia.

The figure has exceeded the threshold of 10 percent which marks a country entering an aging population structure (ageing society).

On the other hand, the life expectancy of the Indonesian people has increased to an average of 74.15 years, while the birth rate continues to decline to 2.13.

This condition makes Indonesia face a new challenge in the form of an increasing ratio of dependence on the elderly population.

Panji said that this change actually opened up opportunities for the development of the silver economy, which is an economic activity that is oriented towards the needs and productivity of the elderly.

He sees various sectors with the potential to grow rapidly, ranging from technology-based health services or health-tech, elderly-friendly tourism, special nutrition products, to the senior living industry.

"The age group over 50 years old currently has different characteristics compared to previous generations. They are healthier, more independent, have accumulated assets, and are increasingly adaptive to technology," he said.

Panji estimates that the number of Indonesian elderly will continue to increase to around 65.82 million by 2045.

Therefore, he assessed that the development of the elderly economic ecosystem would be one of the engines of economic growth as well as improving the welfare of retirees.

According to him, the concept of healthy and productive aging. (active ageing) needs to be strengthened so that people who enter retirement age still have the opportunity to work flexibly as consultants, mentors, and entrepreneurs so as to obtain additional income outside the benefits of retirement.

In addition, the health service ecosystem, social protection, and the elderly community also need to be strengthened so that the quality of life of the elderly community is maintained.

Panji added that the development of the silver economy requires government policy support, ranging from incentives for companies that employ senior workers, reforms to the investment and pension guarantee system, to fiscal incentives for industries that develop services and facilities for the elderly.

"The decline in demographic bonuses is not the end of Indonesia's economic growth. Through the silver economy, the demographic challenge can actually become a new economic opportunity that is more inclusive and sustainable," he said.