People cross a main road outside a shopping mall during afternoon rush hours in Jakarta, Indonesia, Nov. 30, 2022. Photo by Reuters
Indonesia will raise the retirement age for workers to 59, effective this year, in accordance with a government regulation on the Implementation of the Pension Guarantee Program.
A regulation issued in 2015 set the retirement age at 56, with a provision for gradual increases. Starting Jan. 1, 2019, the retirement age was raised to 57, with plans for it to increase by one year every three years until reaching a maximum of 65.
As outlined by the regulation, the retirement age will increase to 59 beginning in January 2025 and remain in effect until 2028.
The updated retirement age also serves as a reference for workers registered with the Employment Social Security Administration Agency (BPJS TK) to claim their pension benefits.
The gradual increase reflects Indonesia’s efforts to address demographic and economic changes, ensuring the sustainability of the pension system while promoting the financial security of the country’s aging workforce.
Comments are closed.