Antara News·Indonesia·Friday, August 28, 2026 at 07:02 AM

Indonesia's consumer agency urges tax relief for retirees

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Jakarta (ANTARA) - Indonesia's National Consumer Protection Agency (BPKN) said the government should provide tax relief, including exemptions, for retirees who meet certain criteria.

"BPKN needs to push for rules that do not burden retirees, especially tax relief. If necessary, tax exemptions should be provided for retirees who meet certain criteria," BPKN Chairman Mufti Mubarok said here Friday.

Mubarok made the statement in response to data on the financial conditions of elderly Indonesians.

He cited 2025 data from Statistics Indonesia (BPS) showing that 48 percent of elderly people rely on children or family members as their main financial source, while about 38 percent still work.

Only about nine percent rely primarily on pension funds, he said, highlighting significant economic challenges facing people entering old age.

Mubarok said retirees' financial situation should not be viewed solely in terms of their ability to manage money.

The government should also introduce policies that take into account people's economic conditions after retirement, he said.

When elderly people still depend on family members or must return to work, the government should review policies that could increase their financial burden, he said.

He said retirees who continue working are not necessarily in strong financial condition.

"When retirees can still work with their remaining energy and relatively good health, we should view this as productive potential. They have experience and skills that can contribute," he said.

He added that working beyond retirement age should be a choice to remain productive, rather than a necessity to meet basic needs.

Therefore, government policy should create opportunities for retirees who can still work while protecting those who are no longer able to do so, he said.

"People who have retired and contributed to the country throughout their lives should not face an increasingly heavy economic burden. The state must provide protection and certainty," he said.

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