Indonesia is preparing for a significant demographic shift as it pursues its vision of achieving a stronger economy by 2045. The government has launched programs including free nutritious meals and cooperative strengthening to build a healthy, educated workforce that can support long-term economic growth.
The nation will face a critical transition to an aging society after the demographic dividend period ends. By 2045, people aged 60 and above are projected to account for approximately 20 percent of Indonesia's total population, or roughly one in five residents, according to government projections.
The Central Statistics Agency released the 2024 National Transfer Accounts, a framework showing how different age groups earn income, spend on consumption, and finance lifecycle deficits through public transfers, private transfers, and asset reallocation. The agency used this data to project conditions for 2045 by assuming that per capita economic profiles remain the same while adjusting for projected demographic changes.
Elderly Indonesians currently face a lifecycle deficit of 645.7 trillion rupiah, meaning their consumption exceeds income from work, the data showed. This gap is primarily filled through asset reallocation, including use of savings and investments accumulated during productive years, as well as public transfers such as pensions and social protection programs. The projection indicates this deficit will more than double to 1.426.4 trillion rupiah by 2045.
Some elderly Indonesians remain net contributors to their families' finances, transferring approximately 39 trillion rupiah in 2024 and a projected 86.9 trillion rupiah in 2045 to support relatives. Asset-based reallocation is projected to increase significantly from 630.7 trillion rupiah in 2024 to 1.391.1 trillion rupiah in 2045, indicating that accumulated savings and investments will become increasingly important for sustaining elderly welfare as the population ages.
