Indonesia Enters Demographic Bonus Era

Indonesia's dependency ratio continuously decreased from 1971 to 2016. In 2016, projections by the Central Bureau of Statistics (BPS) indicated this ratio would be only 48.4. This dependency ratio is the comparison between the non-productive population (aged 0-14 years and 64 years and over) and the productive population (aged 15-64 years).

This means that with a figure of 48.4, every 100 productive-age individuals support approximately 48-49 non-productive-age individuals. Compared to previous years, this dependency ratio is the lowest. Previously, in 1971, the dependency ratio reached 86.8. According to BPS, this condition indicates that Indonesia is entering a demographic bonus era, where the surplus of the productive-age population can be utilized for increased development.

This demographic bonus era will peak in the 2025-2030 period. The island with the highest dependency ratio is Bali and Nusa Tenggara (55.1), and the lowest is Java (45.9). The three provinces with the highest dependency ratios are East Nusa Tenggara (66), Southeast Sulawesi (59.9), and Maluku (59.3). Meanwhile, the three provinces with the lowest dependency ratios are DKI Jakarta (40.3), East Java (44.0), and East Kalimantan (44.8).