Antara News·Indonesia·Friday, September 25, 2026 at 01:35 PM

OJK urges stronger pension ecosystem as Indonesia enters aging phase

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Bayu Saputra, Raka Adji

Jakarta (ANTARA) - Indonesian Financial Services Authority (OJK) Board of Commissioners Chair Friderica Widyasari Dewi has called for a stronger pension fund ecosystem as Indonesia enters an aging population phase.

Speaking in Jakarta on Friday, Friderica said Indonesia has officially entered this phase, with older adults accounting for 11.97 percent of the population, surpassing the 10-percent threshold used to define an aging population.

The trend is expected to intensify, with the elderly population projected to account for 20.31 percent of Indonesia’s population by 2045.

At the same time, Indonesia continues to benefit from a demographic dividend, with around 68.94 percent of its population in the productive age group.

“It means we have a critical window of opportunity to encourage working-age individuals to start preparing for retirement now, before demographic pressures build up further,” Friderica said at the 2026 Indonesia Pension Fund Summit (IPFS).

On the industry side, she noted that the pension fund sector continues to show positive growth.

The number of pension fund participants increased from around 27.27 million in 2022 to 30.67 million as of July 2026, while the industry’s total assets reached approximately Rp1,699.99 trillion (around US$95 billion).

However, she noted that participation remains relatively low compared with Indonesia’s total workforce of more than 150 million people.

To develop the pension fund ecosystem, OJK is promoting four measures.

The first is the adoption of global best practices, which Friderica said should serve as benchmarks while being adapted to the characteristics and needs of Indonesia’s pension system.

The second is improving alignment between mandatory and voluntary pension schemes. She said the pension system should adopt a multi-pillar approach in which programs complement one another and have clearly defined roles.

The third is turning synergy and commitments into concrete action. Friderica emphasized that partnerships and commitments must result in measurable and actionable steps whose implementation can be effectively monitored.

The fourth is expanding financial literacy and inclusion to raise public awareness, encourage greater participation, and broaden retirement protection.

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