Indonesia raises retirement age to 59

10/01/2025 14:38
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KPL (KPL/VNA) Indonesia increases the retirement age for workers to 59, starting in 2025.

(KPL/VNA) Indonesia increases the retirement age for workers to 59, starting in 2025.

The adjustment aligns with Government Regulation (PP) No. 45 of 2015 on the Implementation of the Pension Guarantee Programme.

Article 15 of PP No. 45/2015 initially established the retirement age at 56, with a provision for gradual increases. From January 1, 2019, the retirement age rose to 57, with plans for it to increase by one year every three years until reaching a maximum retirement age of 65.

Therefore, according to the regulations, starting January 2025, the retirement age for workers is 59 and will be applied through 2028.

This regulation also serves as a reference for workers registered with the Employment Social Security Administration Agency (BPJS TK) to claim their pension benefits.

As Indonesia adapts to demographic and economic shifts, the gradual increase in the retirement age aims to ensure the sustainability of the pension system while supporting the financial well-being of the country’s aging workforce.

KPL

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