Indonesia
Worked in Indonesia? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 59. On totalization, your Indonesia contributions generally stand on their own. Below is Indonesia's system at a glance and what expats should check.
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Overview
Indonesia operates BPJS Ketenagakerjaan (formerly Jamsostek), a mandatory social security system providing old-age savings (JHT – Jaminan Hari Tua), pension insurance (JP – Jaminan Pensiun), work accident insurance (JKK), death benefits (JKM), and job-loss insurance (JKP). JHT is a mandatory defined-contribution provident fund paying a lump sum at retirement or qualifying events; JP is a defined-benefit pension program introduced in 2015 paying a monthly annuity after 15 years of contributions (or a lump sum if fewer). Both are administered by BPJS Ketenagakerjaan under Law No. 24 of 2011 and regulated by Government Regulation No. 45 of 2015. Coverage is mandatory for all formal sector workers; informal sector coverage is being expanded.
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The JP retirement age is set at 59 as of January 2025, rising by one year every three years until it reaches 65 in 2043, per PP No. 45/2015. The JP wage ceiling for contribution calculation is adjusted annually based on the prior year's GDP growth rate; effective March 2026, the ceiling is IDR 11,086,300 per month. The Indonesian Ministry of Finance estimates replacement rates of approximately 14.5% from BPJS-JP and 12.6% from BPJS-JHT under a realistic 32-year service scenario, with maximum combined rates of ~53.5% for a full career to age 65.
Voluntary supplementary pensions are available through employer pension funds (DPPK) and financial institution pension funds (DPLK), supervised by the Financial Services Authority (OJK). As of 2024, there were approximately 1.25 million DPPK participants and 3 million DPLK participants. OJK's 2024–2028 Pension Fund Roadmap aims to harmonise, digitalise, and centralise Indonesia's pension ecosystem. Civil servants and military personnel are covered by separate schemes (Taspen and Asabri respectively).
~27% combined (14.5% JP + 12.6% JHT) under 32-year service scenario; maximum ~53.5% for full career to age 65
Pillar 1: BPJS Ketenagakerjaan – JP (mandatory DB pension) + JHT (mandatory DC provident fund); Pillar 2: Dana Pensiun – DPPK (employer pension funds, voluntary occupational) and DPLK (financial institution pension funds, voluntary); Pillar 3: Individual savings and private insurance
Mixed: Mandatory defined-contribution provident fund (JHT) and mandatory defined-benefit pension (JP), both administered by BPJS Ketenagakerjaan; supplemented by voluntary occupational (DPPK) and financial institution (DPLK) pension funds supervised by OJK
Employee
JHT: 2% (no cap); JP: 1% (capped at IDR 11,086,300/month from March 2026); Total mandatory: 3%
Employer
JHT: 3.7% (no cap); JP: 2% (capped); JKK: 0.24%–1.74% (risk-based); JKM: 0.3%; Total mandatory: ~6.24%–7.74%+
Self-Employed
Self-employed may voluntarily contribute to JHT (5.7% total, self-funded) and JP (3% total, self-funded) as non-wage recipients (BPU segment)
Notes
JP wage ceiling adjusted annually by prior-year GDP growth rate per PP No. 45/2015. Effective March 2026: IDR 11,086,300/month (up from IDR 10,547,400 in 2025). JHT has no salary cap. BPJS Kesehatan (health): 4% employer + 1% employee, capped at IDR 12,000,000/month salary base.
Common questions
What is the retirement age in Indonesia?
The full state pension age in Indonesia is 59. Deferring can raise your pension up to age 65.
Can I claim a Indonesia pension if I live abroad?
Yes. A pension you've earned in Indonesia stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through Indonesia's pension authority.
Do totalization agreements affect my Indonesia pension?
Our records show Indonesia has limited or no bilateral totalization agreements, so your Indonesia contributions generally can't be combined with other countries' to qualify. Confirm the latest position with the official authority.
How is the pension system structured in Indonesia?
Mixed: Mandatory defined-contribution provident fund (JHT) and mandatory defined-benefit pension (JP), both administered by BPJS Ketenagakerjaan; supplemented by voluntary occupational (DPPK) and financial institution (DPLK) pension funds supervised by OJK Pillar 1: BPJS Ketenagakerjaan – JP (mandatory DB pension) + JHT (mandatory DC provident fund); Pillar 2: Dana Pensiun – DPPK (employer pension funds, voluntary occupational) and DPLK (financial institution pension funds, voluntary); Pillar 3: Individual savings and private insurance It includes 7 schemes in our directory.