MALIKI

Director of Population Planning and Social ProtectionMinistry of National Development Planning / Bappenas

Jakarta, 22 May 2018

National StrategyTowards an Independent, Prosperous and Dignified Ageing Population Society

OUTLINEElderly and PovertyFulfilment of Elderly NeedsPension PlanNational Strategy on Ageing Population / Elderly

••••

The elderly (60+) population reached 10% by 2021

250

200

150

25

20

15

22

14

8

8,5

Source: BPS, SUPAS 2015, UN Population Projection 2017 Revision

•••

Indonesia is a country that will enter the era of aging population(ageing population)Number of people aged 60 years and over that has exceeded 8.5% in 2015 and 10% in 2021By 2045, the elderly population reaches 57 million people and contributes about 3% of the world's elderly population

3

Pers

enta

se(%

)

2015

2020

2025

2030

2035

2040

2045

2050

2055

2060

2065

2070

2075

2080

2085

2090

2095

2100

Juta

oran

g 913226

17,9

9,5

Percentage of Elderly Age350 29,7 35

300 57 30

18

11

100 11,1 10

50 5,4 6,3 7,2 7,6 5

0 01980 1990 2000 2010 2015 2020 2025 2045 2100

Population Age 60+

Population Under Age 60

Percentage of Elderly Against total population (%)

% Elderly and Rapidity of "Ageing", 2015-21006 40

5 35

304 25

3 20

2 15

101 5

0 0

Indonesia Rapidity of Ageing Malaysia Rapidity of Ageing

Indonesia % Elderly (60+) Malaysia % Elderly (60+)

With a relatively low level of education, the elderly vulnerable to falling into poverty

Level of Elderly Education, 2015

9%4% Never School

Not Passed Elementary School

SD

SMP

SMA

SMK

DIII

S1

2.900

31%8%

4%12,0

3%12%

4% 10%

Source: BPS: Susenas 2013-2016, processed by Bappenas Source: SUPAS 2015 processed by Bappenas

••

The poverty rate of the elderly is relatively higher than in the last two years :(a) lack of skills (low level of education) to get a good job after retirement, (b) have no pension, (c) not getting family support.

4

Ribu

Ora

ng

Number and Poverty Level 60+

3.100 14,53.000 14,09 14,0

2.800 13,52.700 13,05 13,02.6002.500 12,56 12,52.4002.300 2.532 3.022 2.9242.200 11,5

2014 2015 2016

# of Poor People P o v e r t y r a t e (60+)

5

Elderly Give More to Younger Generation

30%71% 70,3%

Within years, there are more roleof government in social assistancetransfers for the elderly (65+).

In 2012, government transfers meet about 8% of the consumption needs of the elderly.

There is a tendency of the elderly to provide support to the younger generation.

Labor income and asset allocationremain an important part to befulfilled as their needs.

• Starting from 2015, Pension Program andOld Age Savings are mandatory

• Pension Program is only for formal workers

Trends in Financing the Elderly (65+) 1993-2012150%

130%50%

110% 43%43% 45%

90% 43% 42,2%

70%

50% 96% 91%81% 80%

10%

-10% 1993 1996 1999 2002 2005 2012

-30%

-50%

Public Transfers Inter-vivos Transfers Work Asset Reallocations

Elderly people still can not be financially independent

• In general, elderly people still have to work to meet the needs of life

The half of the poor elderly population needs are still depend on government assistance

The assistance is then distributed to other family members (intergenerationaltransfers)

•

•

6

• The non-poor elderly population has divested as a way to fulfill their needs

The way to Fulfill the Elderly Consumption(60+)

200

150

100

50

-Poor Not Poor Poor Not Poor

(50) CITY VILLAGE

(100)

Revenue from Assets Public Transfers (net)

Family Transfer (net) Working

Nearly HALF the elderly do not have pension funds

• The pattern of consumption of elderly population shows the level of welfareThe elderly population in the middle and lower income countries are relatively more vulnerable to povertyIn countries with adequate pension funds, the poverty rate of the elderly population is relatively lower than the total population e.g. Latin AmericaCoverage of pension funds :

•

•

•• Europe and America, retirement coverage reaches up to

90%, Middle East <30%, Asia and Pacific <40%

• Elderly women are more vulnerable with lower pension fund

7

INDONESIA

AgeSumber : National Transfer Accounts data base

Per capita consumption age of 60 years and over (relative to consumption 30-49), per age

and state income level

Number of Participants of the Pension Plan, per age, 2017

300.000

Sources: BPJS Ketenagakerjaan, Bappenas, proyeksi BPS

800.000

700.000

600.000

500.000Accident and Death

400.000 Insurance

Pension Program

200.000

100.000

-15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79

Limited ownership of Health Insurance and Old Age or Retirement among the elderly

7.000

3.000

2014 2015 2016

Source: Susenas 2014-2016, processed by BappenasInfo: 1) PBI year 2014 include Jampersal

9

Dal

am r

ibu

RT)

(dal

am r

ibu

RT)

1.0851.049

109

508

3.214

1.293 1.333

Number of Households with Elderly (60+) with Health Insurance

9.000

8.000 81956

1.0486.000

5.000 353 3.175

4.000 3.469

1.199

2.000 1.258

1.000 2.664

02014 2015 2016

Lain Jamkesda PBI 1) Askes/Asabri/Jamsostek BPJS Kesehatan

Number of Households with Elderly (60+) Have Workers Insurance

1.400

1.200

1.000

800

600

400 811

200

0

A. Pensiun/Veteran B. JHT C. JKK D. JK E. Pesangon

AGEING IN INDONESIA:IN 2015, INDONESIA GROWS 2.4% POPULATION OF THE ELDERLY IN THE WORLD

Draft of Presidential Regulation:National Strategy Towards Independent, Prosperous, and Dignified Elderly

5Protection,

Fulfillment and Respect for

Elderly Rights

• Realizing a healthy elderly population through the strengthening of healthy lifestyle (life-course)

Community Development

and the Elderly Human

Resource 1

4 Independent, Prosperous,

and Dignity of the Elderly

• Institution strengthening focus on the elderly and ageing issuesImproving

the Elderly Health

Institutional Strenghtening

of Elderly Implementation

Agency • To increase the coverage of National Social Security membership

Improving the Social

Protection, Revenue

Assurance and Individual Capacity

23

11

Five Important Factors of Consideration on the Elderly Policy

Public Awareness on “ageing” should be prepared as early as possible

Strong institutions are needed to deal with “ageing”

Social Protection as a national scheme “ageing” safeguarding

Individual capacity and health need to be prepared for “active ageing”

Elderly rights as the “development subject”

Ensure that the entire community is financially and skillfully ready to face retirement

Assistance

Hig

her E

duca

tion

TRAN

SFO

RMAT

ION

Protection for the vulnerable elderly who are integrated with other social assistance

Targeted SocialSocial Assistance

Old Age Guarantee (JHT) and Retirement Guarantee (JP) contributions-based

Premium support for the informal

Additional pension for the informal

Old-age Investment: Passive

Income and other investments

Social Security System

Thank you