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INTERNATIONAL JOURNAL OF CREATIVE RESEARCH THOUGHTS - IJCRT (IJCRT.ORG)
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COST ESTIMATION IN IMPLEMENTING UNIVERSAL PENSION IN INDONESIA
Authors
Rendra Hymne Fajar Hutabarat
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Keywords
dependency ratio, multi pillar, old age, social security
Abstract
Abstract: Indonesia currently has 3 types of public pension programs but the programs are only for formal private workers, civil, servant and armed forces. These three programs have coverage of 18.49 million formal workers out of a total of 52.1 million formal worker. Importantly based on a survey conducted by the Indonesian Statistics Center, 55.2% of active workers in Indonesia are still informal. Through 2020 nation survey, it is known that Indonesia is still in a bonus demographic condition where the working age population exceeds 50% of the total population. But through projections made by the Indonesian government in collaboration with the world bank, in 2045 Indonesia will lose this demographic bonus and the population aged 65 years and over will reach 35% of the total population. Ensuring the welfare of these workers, especially those in the informal sector and those who are reaching old age, will be an important issue for the Indonesian government. It is necessary to conduct a study that provides an initial description of cost estimation in implementing universal public pensions. In carrying out this cost estimation, the guidelines prepared by the International Labor Organization (ILO) are used in calculating pension program costs. To calculate this cost, the data used are population data, labor force data, state revenue budget, and projections of the elderly population in Indonesia. In data processing, the ILO guidelines are used to provide a cost estimation of Rp 176 trillion that can be financed by the national budget.
IJCRT's Publication Details
Unique Identification Number - IJCRT2301169
Paper ID - 229783
Author type - Foreign Author
Page Number(s) - b369-b376
Pubished in - Volume 11 | Issue 1 | January 2023
DOI (Digital Object Identifier) -
No Of Downloads - 145
Author Country - Indonesia, 20117, KOTA MEDAN 082245356277, KOTA MEDAN 082245356277, 20117, Others area
Publisher Name - IJPUBLICATION | www.ijcrt.org | ISSN : 2320-2882
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Rendra Hymne Fajar Hutabarat, "COST ESTIMATION IN IMPLEMENTING UNIVERSAL PENSION IN INDONESIA", International Journal of Creative Research Thoughts (IJCRT), ISSN:2320-2882, Volume.11, Issue 1, pp.b369-b376, January 2023, Available at :http://www.ijcrt.org/papers/IJCRT2301169.pdf
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