News

Inter-ministerial discussions on pension reforms

Christianus Panjaitan

Background

The ILO was invited by the Ministry of Manpower to an inter-ministerial meeting on pension reforms.

Contents

The meeting discussed the government's policy direction in reforming old age income security schemes in Indonesia, including a DB pension benefit scheme (Jaminan Pensiun/JP) and a DC scheme old age benefits (Jaminan Hari Tua/JHT).

The meeting, led by Director of Social Security of the Ministry of Manpower, listened and discussed a presentation by Official of Ministry of Finance on the policy direction for pension reform in Indonesia, with reference to the newly enacted Law No. 4 of 2023 on Strengthening and Developing the Financial Sector (P2SK).

The ILO suggested the meeting to take into considerations the importance of coverage and adequacy of the benefits, referring to an actuarial study it conducted, which recommended three reform options of the pension system in Indonesia.

Participants of the meeting include representatives from Ministry of Manpower, Ministry of Finance, Ministry of National Development and Planning, Coordinating Ministry for Economic Affairs, State Secretariat, and National Social Security Council.

Results

The ILO suggested the meeting to take into considerations the importance of coverage and adequacy of the benefits, referring to an actuarial study it conducted, which recommended three reform options of the pension system in Indonesia.