TY - CHAP
T1 - The Indonesian Pension System
AU - Rokhim, Rofikoh
AU - Adawiyah, Wardatul
AU - Faradynawati, Ida Ayu Agung
N1 - Publisher Copyright:
© 2022, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
PY - 2022
Y1 - 2022
N2 - Indonesia is the fourth most populous country in the world, with a population of 273.5 million in 2020. Approximately 14.4% of Indonesia’s population is in the elderly age group and 8.4% of the total population is in the retirement age group. The current pension system in Indonesia is classified into two major categories: mandatory and voluntary. The mandatory pension fund provider consists of three institutions: PT Taspen (Persero) or Taspen hereafter, PT Asabri (Persero) or Asabri hereafter, and BPJS Ketenagakerjaan. The voluntary pension scheme providers consist of two types, namely, Employer Pension Funds (DPPK) and Financial Institution Pension Funds. (DPLK). There are currently no alternative pension-like programs, such as reverse mortgages, in Indonesia. However, there are some challenges faced by the Indonesian pension system. A low participation rate remains one of the biggest challenges faced by BPJS Ketenagakerjaan, and Indonesia’s retirement scheme ranked 30th among 39 countries in the Mercer CFA Institute Global Pension Index in 2020. In addition, the Indonesian government also needs to review the regulation that allows BPJS Ketenagakerjaan’s participants to redeem retirement savings prior to retirement.
AB - Indonesia is the fourth most populous country in the world, with a population of 273.5 million in 2020. Approximately 14.4% of Indonesia’s population is in the elderly age group and 8.4% of the total population is in the retirement age group. The current pension system in Indonesia is classified into two major categories: mandatory and voluntary. The mandatory pension fund provider consists of three institutions: PT Taspen (Persero) or Taspen hereafter, PT Asabri (Persero) or Asabri hereafter, and BPJS Ketenagakerjaan. The voluntary pension scheme providers consist of two types, namely, Employer Pension Funds (DPPK) and Financial Institution Pension Funds. (DPLK). There are currently no alternative pension-like programs, such as reverse mortgages, in Indonesia. However, there are some challenges faced by the Indonesian pension system. A low participation rate remains one of the biggest challenges faced by BPJS Ketenagakerjaan, and Indonesia’s retirement scheme ranked 30th among 39 countries in the Mercer CFA Institute Global Pension Index in 2020. In addition, the Indonesian government also needs to review the regulation that allows BPJS Ketenagakerjaan’s participants to redeem retirement savings prior to retirement.
UR - http://www.scopus.com/inward/record.url?scp=85143519750&partnerID=8YFLogxK
U2 - 10.1007/978-981-19-6446-6_11
DO - 10.1007/978-981-19-6446-6_11
M3 - Chapter
AN - SCOPUS:85143519750
T3 - Contributions to Management Science
SP - 357
EP - 378
BT - Contributions to Management Science
PB - Springer Science and Business Media Deutschland GmbH
ER -