TEMPO.CO, Jakarta - Chairperson of the Indonesian Employers Association (Apindo) Shinta Kamdani discussed the impact of increasing the retirement age for workers in 2025. The retirement age for workers this year has increased to 59 years from the previous 58 years.

Shinta said that the increase is actually not a new policy. This is because the increase in the retirement age is part of a long-term strategy stated in Government Regulation (PP) Number 45 of 2015 concerning the Implementation of the Pension Guarantee Program. The regulation stipulates that the retirement age will increase by one year every three years until it reaches 65 years.

Shinta assessed that the main impact of the increase in the retirement age is that the waiting period for the disbursement of pension guarantee benefits will be longer. Especially for companies that apply a retirement age below 59 years. "Where workers need to wait for the disbursement of pension benefits until they reach that age limit," said Shinta in a written statement on Saturday, January 11, 2025.

Shinta said that in practice, the regulation of the retirement age will depend on each company. The retirement age limit, she said, tends to apply according to the work agreement, company regulations, or work agreements that are mutually agreed upon.

Shinta highlighted the importance of government outreach to companies and workers regarding the waiting period for disbursement of pension benefits. In particular, said Shinta, regarding financial literacy and future planning that will be affected by the adjustment of the retirement age.

"With a longer waiting period for disbursement of pension benefits, the government together with companies and employees need to work together to ensure that our workers have adequate financial readiness," said Shinta.

Head of Public Relations Bureau of the Ministry of Manpower (Kemnaker) Sunardi Manampiar also responded to the determination of 59 years as the retirement age for workers. "At that age, workers registered in the Pension Guarantee (JP) program are entitled to receive benefits from BPJS Ketenagakerjaan, both while still working and after not working," said Sunardi through an official statement on Thursday, January 9, 2025.

JP benefits can be disbursed when participants enter retirement age, experience permanent total disability, or are heirs for participants who die. In addition to Pension Guarantee, Sunardi added, companies are required to fulfill other workers' rights, namely severance pay, long service award money, and Old Age Security (JHT).

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