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View all search resultsPension still an afterthought for informal workers despite govt push
The government says pension fund coverage must be extended to include Indonesia’s massive informal sector and lift up the sluggish industry, but the push is constrained by low awareness and unstable incomes.
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Cashing in: Retirees wait to receive their monthly pension fund payouts in Jakarta in February 2011.
(Courtesy of Kontan/Baihaki)
T
he government says pension fund coverage must be extended to include Indonesia’s massive informal sector and lift up the sluggish industry, but that is more easily said than done.
Improving literacy alone will not be enough, experts say, as informal workers typically have irregular income, which hampers their ability to participate in traditional pension schemes.
Manpower Minister Yassierli has emphasized that old-age social protection for informal workers must be a top priority, given that they represent roughly 60 percent of the country’s 155 million workforce.
“This is a concern for all of us, ensuring they also receive social protection, because every citizen has the right to social protection,” Yassierli said on Sept. 6 during an event to kick off Pension Fund Month 2026, as quoted in a press release.
He went on to say that, even as Indonesia experiences a demographic bonus, the country is moving toward an aging population, underscoring the need to ensure public preparedness and lifelong social protection.
Read also: Unions push to scrap pension fund withdrawal tax
“We want them to be able to keep working, so they do not depend on the productive workforce,” Yassierli added.
