An in-depth overview of Indonesia’s aging population
Indonesia’s aging population has certain financial and living dynamics, varying from one province to another. For instance, Jakarta stood out with the largest proportion of elderly individuals belonging to the top 20 percent economic group, indicating more favorable financial conditions. In contrast, while the Special Region of Yogyakarta has the largest elderly population, the province also records the highest percentage of elderly citizens who fall into the lower economic brackets.Many Indonesian seniors who continue working in their old age engage in informal employment, providing them with less financial security. Additionally, a substantial number of these elderly workers possess lower education levels. More than a third of Indonesia’s senior citizens live in a three-generation household, which may indicate their level of dependency. This can also be related to the prevailing cultural norms among many Indonesians that placing elderly parents in nursing homes is generally viewed negatively.
Challenges confronting the society
With the aging population, Indonesia’s current young generation must adequately prepare to maintain independence in their later years. However, they face numerous obstacles. The “sandwich generation” phenomenon has become ubiquitous among many Indonesians. These individuals face pressures due to the financial burden of providing for themselves, their children, and their parents. This situation can reduce their ability to save for retirement, potentially leaving them dependent on the government or their descendants in their old age.Additionally, the number of pension funds and their participation in Indonesia has seen a decline over the past year. Retirement planning is vital for long-term economic growth and the well-being of Indonesia’s aging population. The relatively low literacy and inclusion rate on pension funds in the country amplifies this concern, highlighting the importance of improving the population’s financial literacy and enhancing accessibility to pension funds as part of appropriate retirement planning.
