Indonesia Raises Retirement Age to 59 Years Starting 2025
Jakarta, Jan 7 – Starting 2025, Indonesia increases its retirement age to 59 years, up from the current 58. This change is in line with the Government Regulation No. 45/2015 governing the implementation of the Pension Program by the Social Security Administering Body for Employment (BPJS TK).
The regulation stipulates that the retirement age will increase by one year every three years, starting from 2019 when it was initially set at 57 years. As per Article 15 verse (3) of the regulation, "the retirement age shall increase by one (1) year for each three (3) years, up to a maximum of sixty-five (65) years."
Previously, the retirement age was 56 years. It increased to 57 years beginning January 1, 2019, then to 58 years in 2022, and will reach 59 years in 2025.
This change impacts workers’ entitlement to pension benefits under the BPJSTK-run Pension Program. The pension is a monthly cash payment to workers who have reached retirement age, become permanently and totally disabled, or to the beneficiaries of deceased participants.
The regulation sets the minimum pension at IDR 300,000 and the maximum at IDR 3,600,000 per month. The pension amount is calculated based on a formula for the first year, with subsequent years adjusted by an index factor.
Workers can receive the old-age pension once they reach retirement age and have at least 15 years (or 180 months) of contributions. If a worker continues to work past the retirement age, they can choose to receive the pension upon reaching retirement age or upon leaving their job, provided they do so within three years of retiring.
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