Indonesia Pension Outlook: Elderly Share and Tax Implications

On 30 October 2025, DDTCNews released the third episode of its Dapur DDTCNews podcast, focusing on retirement and its tax implications. The discussion was led by editor Dian Kurniati, reporter Muhamad Wildan, and tax‑law specialist Nora Galuh Candra Asmarani.

According to Statistics Indonesia, people aged 60 and above accounted for 12 % of the population in 2024 and are projected to reach 20.31 % by 2045, raising the elderly dependency ratio to 17.76 in 2024 (meaning 100 working‑age individuals support about 18 seniors). This demographic shift increases the economic burden on the workforce and expands the sandwich generation (those supporting both children and elderly parents).

Consequently, understanding how pension contributions and payouts are taxed is essential for taxpayers. Clarifying whether monthly contributions are taxable and how taxes apply upon retirement can help individuals better prepare their long‑term finances.