Jakarta – The government has raised the retirement age for Indonesian workers to 59 years, effective from 2025. This change serves as a reference for benefiting from the Pension Insurance program organized by the Social Security Administration Agency (BPJS) for Employment.
The change is based on Government Regulation (PP) Number 45 of 2015 concerning the Implementation of the Pension Insurance Program. It states that the retirement age increases by one year every three subsequent years, starting from 2019, which was initially set at 57 years.
“The retirement age as referred to in paragraph (2) will further increase by 1 (one) year every 3 (three) years thereafter until it reaches the retirement age of 65 (sixty-five) years,” reads Article 15 paragraph (3) of the regulation, quoted on Tuesday (7/1/2025).
Initially, the retirement age was set at 56 years. Starting January 1, 2019, it increased to 57 years, then to 58 years in 2022, and now, starting 2025, it will be 59 years.
The retirement age limit impacts workers’ rights to receive pension benefits under the Pension Insurance program organized by BPJS for Employment. Pension benefits refer to a certain amount of money paid monthly to participants who have reached the retirement age, experienced total permanent disability, or to the heirs of participants who have passed away.
For the first time, the retirement age was set at 56 years. From January 1, 2019, it became 57 years, then 58 years in 2022, and now 59 years starting 2025.
The retirement age limit affects workers’ entitlement to pension benefits under the Pension Insurance program organized by BPJS for Employment. Pension benefits are monthly payments given to participants upon reaching retirement age, suffering from total permanent disability, or to the heirs of participants who have passed away.
