Many Indonesian Workers Lack Pension Program Coverage in 2023

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Adi Ahdiat 11/09/2024 17:06 WIB

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The number of participants in the BPJS Employment's Pension Guarantee program in 2023 was only 14.42 million people, representing just 10.3% of Indonesia's total workforce.

Number of Working Population and Participants of the BPJS Employment Pension Program (2015-2023)*

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Number of Working Population and Participants of the BPJS Employment Pension Program (2015-2023)*

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Many Indonesian workers lack coverage under the government's pension program.

This is evident in the low number of participants in the BPJS Employment Pension compared to the total working population.

According to data from the Central Bureau of Statistics (BPS), in August 2023, the number of working Indonesians reached 139.85 million.

However, in 2023, only 14.42 million people participated in the BPJS Employment Pension, representing only 10.3% of the total working population.

According to information on the BPJS Employment website, pension participants can receive cash benefits including:

1. Old-age pension: Monthly payments if participants have fulfilled a minimum of 15 years of contributions (or 180 months) upon reaching retirement age, until death.

2. Widow/widower's pension: Monthly payments to widows/widowers who are legal heirs (registered with BPJS Employment) until death or remarriage.

3. Disability pension: Monthly payments if participants experience permanent total disability, and the event causing the permanent total disability occurred at least 1 month after becoming a participant, with a density rate of 80%.

4. Child's pension: Monthly payments to the children of the participant's legal heirs (maximum 2 registered children) until age 23, marriage, employment, or death.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."