Indonesia’s retirement income system comprises earnings-related civil service pensions, mandatory defined contribution plans for private sector workers and voluntary defined contribution plans for other workers. A new national pension scheme, launched in July 2015, will provide a defined benefit scheme funded through employer and employee contributions of a fixed percentage of the monthly salary.

The overall index value for the Indonesian system could be increased by:

  • introducing a minimum level of support for the poorest aged individuals
  • increasing the level of pension provision within the workforce
  • improving the regulatory requirements for the private pension system
  • improving the required level of communication to members from pension arrangements
  • increasing the pension age as life expectancy continues to increase

The Indonesian index value increased slightly from 48.2 in 2015 to 48.3 in 2016.

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