NATIONAL COMMISSION FOR OLDER PERSONS

OLDER PERSONS SOCIAL SECURITY

AND

POVERTY PREVENTION

T. HARTONO

CHAIR PERSON II NCOP- INDONESIA

Facts about Indonesia’s Aging Population

Social Security & Implementation

Health Insurance

Poverty Prevention

The Way Forward

3

INDONESIA

• An archipelago of 17.000 islands with more than 300 ethnic groups

• A highly populated country with 235 million people (older population is around 23 million)

• Spreading between Indian and Pacific ocean with 3.977 miles.

POPULATION AGEING

• Indonesia is considered an aged-structured population. There are 11 of 33 provinces which average has reached 9.6% and mostly are in Java, Sumatera and Nusa Tenggara.

• By 2050, it is estimated to reach above 20% and its oldest population (80+) will grow more rapidly from below 0.5% in 1950 to almost 5% in 2050.

• Indonesia will experience a demographic dividend

beginning the earlier part of this Century. Thus,

Indonesia has quite limited time to prepare for an overall

aged society.

OLDER POPULATION GROWTH

YEAR LIFE

EXPECTANCY NUMBER PROPORTION

1980 52.2 7,988,543 5.45%

1990 59.8 11,227,557 6.29%

2000 64.5 14,439,907 7.18%

2010 67.4 23,992,553 9.77%

2020 70.2 28,882,879 11.34%

(BPS 2004)

SOCIAL ECONOMIC CONDITION

• The social economic condition of older persons

especially in the rural area are low, support is mainly

received from the family, efforts to improve health and

welfare is not optimal, but psycho-social condition of

older persons is relatively good.

• Education of the older population is generally low.

However older people are mostly active. Around 80 %

remain active at home, in the communities as well as in

economic-productive activities.

• Health of older population related to morbidity rate tend

to increase.

SOCIAL SECURITY

• Social protection and alleviation of poverty is regulated in

Law no 13 year 1998 on Older person welfare. Social

protection mainly is provided to non-potential or dependent

older persons.

• In Law no 40 year 2004 on National Social Security System

it has been stated that Social Security is one form of social

protection to ensure that all the people are able to fulfill

their basic needs for a sustainable livelihood.

• It is stated that social security program for the destitute and

poor is paid by the Government. At its initial phase, paid by

the Government for the health security program.

IMPLEMENTATION

• Due to limited State budget, social security for older

people has not been provided yet. The Government

through the Ministry of Social Affairs initiated the pre-

testing of Older Person Social Security

• Beginning in 2006 the government implemented cash

transfer for poor older people. That was a social security

for very poor older people (JSLU) with index Rp. 300.000

($ 35) per month /person. The total budget is about $ 4,2

Million, allocated in 10 provinces

• In 2011 the budget has been increased to $ 5,3 Million for

all 33 provinces

• Distribution of funds to older person social security

recipient, technically is in cooperation with the Indonesia

Postal Service through direct service by the postman to

the address of the recipient and older person attendant.

• The Government through the Ministry of Social Affairs

proposes the JSLU budget to be increased annually and

developing a scheme that supports older people

livelihood so that they remain active and productive.

HEALTH INSURANCE

• Started in 2004 the Indonesian government introduced

the first phase of its plan to achieve universal health

coverage through a mandatory public health insurance

scheme or Health Insurance for the Poor (Askeskin).

Askeskin, is targeted to provide primary health care

services to the poor and increase access to care and

financial protection for the poorest.

• In 2008, Askeskin evolved into Public Health Security

(Jamkesmas). This is an Insurance program of the

Ministry of Health that presently covers 76.4 million poor

people. It is estimated that 10% of the poor people are

the aged.

POVERTY PREVENTION

• Government conduct efforts :

• to empower potential older persons to prevent poverty

through education or training, so that they are able to

do or create jobs in their post pension work place both

individually or as groups.

• To encourage economic group activities through older

person social organizations to provide additional

income.

• To facilitate community base organization to

encourage involvement in poverty prevention and

alleviation initiatives.

THE WAY FORWARD

In anticipation of the rapid older population growth in this

decade, important strategies to be taken are:

• To evaluate the existing policy & implementation on

older person social security and poverty alleviation for its

improvement and development in the future.

• To increase older person participation in the family,

community and productive activities or development.

• To increase coordination and cooperation both at

regional and international levels.

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