Only 23.6 Million Workers Enrolled in Pension Programs, Finance Ministry Flags Low Public Participation

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TANGERANG, Investortrust.id — Indonesia’s Finance Ministry highlights the country’s low public participation in pension programs, with less than half of the national workforce currently enrolled in formal retirement schemes.

Director of Pension Fund, Insurance, and Actuarial Development at the Ministry of Finance Ihda Muktiyanto said that out of roughly 144 million workers nationwide, only about 23.6 million are currently registered in mandatory pension programs. He noted that this leaves a large proportion of workers—especially those in informal sectors and small and medium enterprises—without adequate old-age protection.

“They are not covered by sufficient pension guarantees,” Ihda said during the Indonesia Pension Fund Summit (IPFS) 2025 themed “Towards an Inclusive, Digitalised, and Sustainable Retirement System in Indonesia” at Hotel Tentrem, Tangerang, on Thursday, Oct 23, 2025.

Ihda added that another challenge is the relatively small size of Indonesia’s pension fund assets compared with those of member countries of the Organisation for Economic Cooperation and Development (OECD). As of 2024, Indonesia’s total pension fund assets—covering both mandatory and voluntary programs—stood at Rp 1,509.99 trillion, equal to around 6.8% of gross domestic product.

Although this marks some progress from the previous year, the figure remains far below regional peers. “Malaysia, for example, already has pension fund assets exceeding 60% of its GDP,” Ihda said.

“This means we still face a major challenge in expanding the scale and depth of our pension fund assets so they can play a more significant role in ensuring elderly welfare and supporting Indonesia’s long-term economic growth,” he explained.

He emphasized that pension system reform must go beyond asset growth and focus on broadening participation across all worker categories. “Reforming the national pension system should aim to expand participation coverage significantly,” Ihda said.

Data from the Financial Services Authority (OJK) showed that as of August 2025, voluntary pension programs held Rp 395.35 trillion in assets, up 4.47% year-on-year. Mandatory programs reached Rp 1,216.11 trillion, growing a stronger 9.86% year-on-year. Meanwhile, total assets of the guarantee sector increased by 1.94% year-on-year to Rp 48.83 trillion.