Indonesia enters aging population era, increasing 'sandwich generation' burden

Indonesia has officially entered an era of an aging population, with the proportion of elderly residents reaching 11.97% of the total population, according to the 2025 Inter-Census Population Survey (SUPAS). Concurrently, the population growth rate has slowed to 1.08% annually, and the Total Fertility Rate (TFR) has dropped to 2.13 children per woman, nearing the replacement level. The dependency ratio has also risen to 45.05.

Budi Setiyono, Secretary of the Ministry/Main Secretary of the Coordinating Ministry for Human Development and Cultural Affairs/BKKBN, stated that this demographic change signifies a shift in Indonesia's age structure. While it reflects successful development through increased life expectancy, improved health, and reduced mortality, it also introduces new challenges. These include a greater need for social protection for the elderly and an increased burden on the working-age population.

Findings from the 2025 Family Data Update by the Ministry of Population and Family Planning/BKKBN reinforce this trend. Approximately 25.17 million families, or 33.98% of all surveyed families, have at least one elderly member. This means nearly one in three Indonesian families currently lives with an elderly person, indicating that population aging is not a distant projection but a daily reality.

The increasing number of families supporting both dependent children and aging parents, known as the 'sandwich generation,' is a consequence of demographic transition. This phenomenon has economic implications, as many Indonesian workers in the informal sector lack adequate pension coverage, relying heavily on family support in old age. The Intergenerational Transfer Theory further highlights the family's role as the primary institution for transferring resources between generations, with adult children in Indonesian culture traditionally bearing the responsibility of supporting their elderly parents.

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This demographic change signifies a shift in Indonesia's age structure. On one side, this condition reflects the success of development because people live longer, health quality increases, and mortality rates decrease. However, on the other side, the government reminds of the emergence of new challenges in the form of increasing needs for social protection for the elderly and the growing burden on the productive-age family.