Jakarta, Indonesia Sentinel — The Indonesia government has officially announced an increase in the retirement age for workers to 59, starting in 2025. The adjustment aligns with Government Regulation (PP) No. 45 of 2015 on the Implementation of the Pension Guarantee Program.
Previously, Indonesia’s retirement age was set at 56. However, according to Article 15 of PP No. 45/2015 initially established the retirement age at 56, with a provision for gradual increases. From January 1, 2019, the retirement age rose to 57, with plans for it to increase by one year every three years until reaching a maximum retirement age of 65.
“The retirement age, as referred to in paragraph (2), will increase by one year every three years until it reaches 65,” states Article 15, Paragraph 3 of PP No. 45/2015.
Therefore, according to the regulations, starting January 2025 the retirement age for workers set at 59 years and will be applied through 2028.
Pension Benefit
This regulation also serves as a reference for workers registered with the Employment Social Security Administration Agency (BPJS Ketenagakerjaan or BPJamsostek) to claim their pension benefits.
The retirement age directly impacts workers’ rights to pension benefits managed by BPJS Ketenagakerjaan. These benefits are monthly payments provided to participants who have reached retirement age and may include old-age pensions, disability pensions, survivor pensions for widows or widowers, child pensions, or parental pensions.
According to Article 18 of PP No. 45/2015, the minimum monthly pension benefit is set at Rp300,000 ($19), while the maximum is Rp3.6 million ($230) per month. These amounts are adjusted annually based on the previous year’s inflation rate.
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Workers who continue employment after reaching retirement age can choose to claim their pension benefits immediately or defer them until they officially stop working, with a maximum delay of three years after reaching retirement age.
As Indonesia adapts to demographic and economic shifts, the gradual increase in the retirement age aims to ensure the sustainability of the pension system while supporting the financial well-being of the country’s aging workforce.
(Raidi/agung)
