July 30, 2024
JAKARTA – In Indonesia, age significantly dictates opportunities and limitations. Job openings for entry-level positions often have a maximum age limit of 25 years. College applications are restricted to students who graduated high school within the last two years.
Even in marriage, Statistics Indonesia (BPS) data in 2022 showed that one-third of young people marry for the first time between 19 and 21, and more than half marry before age 25. Consequently, societal culture deeply admires youth. It is common to see someone go viral solely for being young. For example, last year, a student gained widespread media attention for being admitted to a premier medical faculty at the tender age of 15.
The national media is filled with stories of the “youngest ever” in various fields, such as the youngest professor, military general or legislator. Universities even honor the “youngest graduate” during their ceremonies.
Conversely, the country’s fascination with youth means that aging is feared. There are limited opportunities to change jobs, access government scholarships or start afresh in almost any field if you are older. As a result, there is little chance of a good quality of life once you are past productive age.
The 2023 National Workforce Survey revealed that almost 80 percent of elderly people (aged 60 and above) come from lower-middle-income backgrounds, only 33 percent have savings and more than 7 percent do not own a house.
About 54 percent still serve as breadwinners for their families, with 85 percent working in the informal sector. Most are uneducated and earn an average income of only Rp 1.7 million (US$104) per month.
The emphasis on youth is not without reason. Indonesia is said to be benefitting from a “demographic dividend” phenomenon, where the working-age population (15 to 64) is larger than the non-working-age population (under 15 and over 65).
Learning from other countries’ experiences, such as China in 1997 and South Korea in 1987, successful utilization of this period can propel a country’s per capita income and overall prosperity. For example, China saw its per capita GDP increase 18-fold in 2021 after just 24 years of a demographic dividend.
However, a country cannot remain young forever. Slowing population growth and longer life expectancy will result in a higher proportion of elderly people. The National Development Planning Agency (Bappenas) reported in 2023 that Indonesia’s population growth for 2020-2050 is projected to average 0.67 percent by 2045, continuing to slow each year.
It is predicted that by the time Indonesia reaches 100 years of independence, the elderly population will swell to 20.31 percent, or one in five people. Since 2022, Indonesia has already entered aging population territory, while the demographic dividend period is expected to end in 2041.
This means we are at a critical juncture. The window to reap the benefits of our demographic bonus is closing fast, while the challenges of an aging population will soon emerge.
Older people, when not managed carefully, tend to be less able to work, leading to a smaller talent pool within the workforce, increased labor costs and stunted economic growth. They are also prone to more chronic diseases, leading to greater strain on the healthcare and social security systems.
Aging and sick people need caregiving, leading to the “sandwich generation” phenomenon, where the working-age population must support both their children and parents. This is a phenomenon we are increasingly seeing in our society today.
Thus, it is in our utmost interest to make sure the current and future generations remain productive and healthy as they age. The question is how?
First, invest in them by ensuring the older generation has the same opportunities to excel in life as their younger counterparts. Start by removing age limits for higher education and scholarships, allowing career changes later in life.
Job openings, especially non-physically demanding ones, should be accessible to older applicants. For example, Japan’s Silver Human Resource Centers offer part-time work for seniors, helping them stay productive and contributing to society.
As two-thirds of Indonesia’s population resides in cities, urban planning must accommodate older people. Revamp infrastructure to include lifts and accessibility in pedestrian bridges and public transportation stations, enabling older adults to move around easily. Improved urban mobility can lead to increased economic participation, enhancing productivity and reducing social isolation.
Second, ensure that young people can age healthily by implementing strong policies to support healthy lifestyles, such as tobacco control.
Smoking is proven to significantly impact national health insurance and damages the economy due to lost productivity from diseases resulting from smoking such as stroke, heart disease and cancer.
Despite recent efforts like banning single cigarette sales and increasing taxes, progress is limited. The 2023 Indonesia Health Survey reported that the prevalence of active smokers has reached 70 million people. Worryingly, 7.4 percent of them are young people aged 10-18, and this age group shows the most rapid increase in active smoker rates.
Drastic action is needed now to ensure the current generation does not age and become a burden on the country in years to come.
Countries like the United Kingdom are moving toward banning smoking by raising the legal age annually. Indonesia can adopt similar bold measures to ensure smoke-free future generations. This policy should be supported by accessible smoking-cessation programs, including nicotine-replacement therapies and counseling at community health centers covered by the national health system. Effective tobacco control policies can significantly reduce the burden on future generations.
Building a healthy, educated and productive elderly generation will allow Indonesia to extend the benefits of the demographic dividend well beyond 2041.