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Percikan pikiran seorang ekonom.

Population Ageing: issues for all ages

Aris Ananta

We know that the coming rapid population ageing will create a heavy financial burden for the governments, societies, and households in many countries in the world, including Indonesia.  How to solve it?

          There are still a lot of different answers.

          And here is our tentative recommendation.

          We need a policy package which consists of three  sub-policies. These three sub-policies must be implemented together.

 Abolish retirement age,  seniority system, and  “juniority” systems

It is against human right to deny people to work and reward simply because of their ages, old or young.

 Create a merit system.

 People should be hired and rewarded according their productivity.

 Create a just and sustainable social security system.

The state must provide assistance for those who cannot work and cannot support themselves fully. The assistance is regardless the ages, for both the young and the old.

In short, currently, Indonesia is still at the early stage of developing a just and sustainable social security system. In the mean time, Indonesia could start implementing the first two sub-policies: abolishing retirement age, seniority system, juniority system and creating a merit system.

I hope, I can soon write our recommendation in a greater detail. I warmly welcome anybody who is interested to develop this recommendation further.

Filed under: ageing, economy, English, , , , ,

6 Responses

  1. BA says:

    How do we have the money to “Create a just and sustainable social security system”?

    Are we going to raise more taxes? issue more government bonds or just simply print more money?

  2. Nuruzzaman Arsyad says:

    Pak Ananta,

    Regarding the idea of the retirement age abolition, It might avoid the reduction of productivity as aging population increase. This in turn, will reduce the government expenditure with respect to social security fund. However, there is another issue in Indonesia, unemployment. IMHO, abolishing retirement age, will affect labor market.

    Abolish retirement age might reduce labor demand, and therefore extend unemployment spell of young generation.

    But, this is just my comment, perhaps you have different argument on this issue. Really hope that you can share it.

    Regards,
    NA

  3. fajrian says:

    hi mr aris, i stumbled upon this article while doing random browsing, and i really like this article.

    however, i think the current mindset in indonesia is quite hostile to this thinking. i heard that from my relative who is working in corporate indonesia, corporate indonesia prefers to recruit their employees while they are young, means not long after they graduated from university.

    except for top and highly strategic positions (which can be reached only by privileged few, certainly), corporate indonesia tends to be unwilling to recruit experienced employees for mid career entry. even those who are recruited this way will find it difficult to be converted into permanent employee.

    the reason i heard is that those who enter in their mid career will have their mind already “poisoned” by their previous experience.

    this corporate indonesia’s behaviour is clearly very hostile to old workers. if even those who join corporate indonesia in mid career is discriminated against, clearly those who join in old age will face even more severe discrimination. it practically means that those whose career doesn’t advance (which means most workers) by their mid career won’t have any choice except to continue working for the same employer until that employer doesn’t need him/her anymore.

    while i don’t know exactly why corporate indonesia behaves like this, as far as i know corporate japan also behaves similarly.

    perhaps there is something in indonesia (and japan) business world which makes it difficult for business to not practice age discrimination.

    just my 2 cents

    fajrian

    • mletiko says:

      Dear Fajrian,

      Thank you for sharing your observation. Most importantly, you are still young and you are concerned with ageing issues. I started my interest on ageing when I was still below 40 years old. You are better than I am because you are still under 30. Indeed, ageing issues are for everybody, regardless the age. Furthermore, everybody will be old.

      The issue I mention can be found in many places and countries in the world. Not only Indonesia. Your participation, as a young man, in the search of a solution to ageing issues is really important. I hope more young men (and women) will join you.

      Read my other articles on ageing in http://www.mletiko.com. Some are written in bahasa Indonesia.

      Best regards,

      Aris

  4. Andi says:

    We can actually see the way corporate Indonesia hire new people. They will ask in the resume for a photo ID, your age, sex, religion and your marital status. While in other countries such as Australia, asking for photo, age and religion is regarded as discrimination and there are cases where someone sues the company because of this. That is why in Australia, the company hires people based on the skills and experience and not based on the age. I see alot of old people in corporate Australia and some even disable people. I think going forward, corporate Indonesia should start looking to hire people based on their skills and experience. If we think about it, it will actually benefit the company because the people who do the hiring will focus more on the skills and experience.

    • mletiko says:

      Any similar experience in other countries? We should learn more from Australia, particularly how to convince the government not discriminate employment based on age, sex, religion, and marital status.

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