Govt Supports Pension Fund Development to Expand Social Protection for Workers

RRI.CO.ID, Jakarta - Minister of Manpower, Yassierli has expressed support for the Financial Services Authority’s (OJK) initiative through the Kick-Off and Launch of Pension Fund Month 2026, as part of the government’s efforts to expand social protection coverage for Indonesia’s entire workforce.

He said social protection remains a major challenge, as around 60 percent of Indonesia’s 155 million workers are employed in the informal sector. The government is committed to ensuring that workers remain productive during their working years while also having adequate protection to live independently and prosperously in old age.

“The kick-off of Pension Fund Month is in line with the Ministry of Manpower’s efforts to continuously strengthen protection for our workforce,” Yassierli said in his remarks in Jakarta on Sunday, September 6, 2026.

According to him, strengthening pension protection is also important to anticipate changes in Indonesia’s demographic structure. Indonesia is currently benefiting from a demographic dividend but will gradually face the challenges of an ageing population.

He emphasized that preparations for retirement should begin during people’s productive years so they can remain financially independent in old age rather than relying on the active working population. Therefore, collaboration between the government and various stakeholders is needed to strengthen social protection.

“This is a concern for us, a concern for all of us, to ensure that they continue to receive social protection, because every citizen has the right to social protection,” the Manpower Minister stressed.

Meanwhile, Chairwoman of the OJK Board of Commissioners Friderica Widyasari Dewi, said the launch of Pension Fund Month serves as an important momentum to raise public awareness of the importance of preparing for retirement from the beginning of one’s working life. OJK data shows that Indonesia’s pension fund literacy rate currently stands at only 22 percent, highlighting the need for stronger public education and outreach to improve people’s financial preparedness for old age.