Indonesia – DJSN Encourages Employers To Adjust Their Policies On Pensionable Age.

13 April, 2018

The Board of National Social Security (Dewan Jaminan Sosial Nasional – “DJSN”), an agency board in charge of advising the President on social security policy, recommends that stakeholders (i.e. the government, employers’ associations and labour unions) consider determining the applicable pensionable age of employees to be within the range of 56 to 59 years old, in order to allow employees to cash out their pensions between the ages of 56 and 59, instead of waiting to reach the age of 65. This is due to the provisions under Government Regulation No. 45 of 2015 on the Management of the Pension Security Program which specifies that participants are only eligible to cash out their pensions:

• before 1 January 2019 – if they have reached the age of 56 years old; and 
• on and after 1 January 2019 – if they have reached the age of 57 years old. After every third year, this age will increase by one year until the participant reaches 65 years old.