As of 2022, Indonesia’s senior population amounted to nearly 19 million. The number of elderly citizens has gradually increased over the past decade. As Indonesia is entering a demographic dividend period where a working-age population dominates the country, it is expected that by the end of this phase, Indonesia will see a surge in the share of its old-age population.
Indonesia’s demographic shift
Contrary to some Asian countries that are trying to accelerate their population growth, the Indonesian government has been trying to persuade its citizens to have fewer children. Many initiatives in promoting family planning and later marriages have led to a more controlled population growth. However, the country is expected to face a demographic shift in the upcoming years, with projections indicating that the elderly population will make up 20 percent of the country’s population in 2045. Considering this, the Indonesian government has been reassessing its family planning initiatives to better prepare for the risks of an aging population.
Retirement readiness among the society
Indonesia still has a relatively low literacy rate for pension funds and a significantly lower inclusion rate of only slightly over five percent. In conjunction with this, only roughly 11 percent of the elderly households in Indonesia were part of social security programs, and a large share of the country’s senior citizens live in three-generation households. These concerns tend to expose Indonesia to higher dependency risks among its aging population. Indeed, it is crucial to address the need to increase awareness of and enhance accessibility to pension funds or social security programs for adequate retirement planning in Indonesian society.
Total population aged 65 years and above in Indonesia from 2013 to 2022
(in millions)
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World Bank. (September 21, 2023). Total population aged 65 years and above in Indonesia from 2013 to 2022 (in millions) [Graph]. In Statista. Retrieved November 23, 2024, from https://www.statista.com/statistics/1421063/indonesia-number-of-aging-population/
World Bank. "Total population aged 65 years and above in Indonesia from 2013 to 2022 (in millions)." Chart. September 21, 2023. Statista. Accessed November 23, 2024. https://www.statista.com/statistics/1421063/indonesia-number-of-aging-population/
World Bank. (2023). Total population aged 65 years and above in Indonesia from 2013 to 2022 (in millions). Statista. Statista Inc.. Accessed: November 23, 2024. https://www.statista.com/statistics/1421063/indonesia-number-of-aging-population/
World Bank. "Total Population Aged 65 Years and above in Indonesia from 2013 to 2022 (in Millions)." Statista, Statista Inc., 21 Sep 2023, https://www.statista.com/statistics/1421063/indonesia-number-of-aging-population/
World Bank, Total population aged 65 years and above in Indonesia from 2013 to 2022 (in millions) Statista, https://www.statista.com/statistics/1421063/indonesia-number-of-aging-population/ (last visited November 23, 2024)
Total population aged 65 years and above in Indonesia from 2013 to 2022 (in millions) [Graph], World Bank, September 21, 2023. [Online]. Available: https://www.statista.com/statistics/1421063/indonesia-number-of-aging-population/