Pension still an afterthought for informal workers despite govt push
The government says pension fund coverage must be extended to include Indonesia’s massive informal sector and lift up the sluggish industry, but the push is constrained by low awareness and unstable incomes.
The Indonesian government is striving to expand pension fund coverage to the country's vast informal sector, despite challenges posed by low awareness and unstable incomes. Roughly 60 percent of the nation's 155 million workforce comprises informal workers, highlighting the urgency of this issue. Manpower Minister Yassierli emphasized that ensuring old-age social protection for these workers is a top priority.
However, improving literacy alone is unlikely to suffice, as informal workers often have irregular incomes, complicating their participation in traditional pension schemes. As Indonesia faces a demographic bonus but also an aging population, the government underscores the need to ensure public readiness and lifelong social protection for all citizens.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
