The demographic bonus, which started in 2012, is expected to close out in 2036, meaning the nonproductive population will exceed the working-age population after 2036.
The government needs to start formulating policies to anticipate a decline in the working-age population, as the demographic bonus – a condition where the productive population exceeds the nonproductive population – is projected to peak next year and end in 2036, according to Statistics Indonesia (BPS).
The population will grow from an estimated 266.9 million in 2019 to 318.96 million in 2045, according to the BPS’ 2015-2045 projection.
The demographic bonus, which started in 2012, is expected to close out in 2036, meaning the nonproductive population will exceed the working-age population after 2036.
That would mean that the younger generation would bear a higher burden to support the older generation, Gadjah Mada University professor Tadjuddin Noer Effendi said.
He suggested that the government consider increasing the mandatory retirement age to expand the working-age population, which currently comprises people between the ages of 15 and 64.
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