Indonesia's Aging Population Offers New Economic Growth Engine: Bank Mantap CEO

Indonesia is transitioning into an aging society, a demographic shift that presents both challenges and significant economic opportunities. Bank Mandiri Taspen CEO Panji Irawan emphasized that the growing elderly population should be viewed not as a burden, but as a potential engine for national economic growth through the development of a "silver economy."

"If we only see the elderly as a burden, we will miss out on a huge economic potential. The silver economy actually opens up opportunities for people to remain productive and independent in retirement," Panji stated during a media gathering in Gianyar, Bali. He explained that the traditional view of retirement as a cessation of work needs to evolve. Instead, it should be seen as a phase where individuals can remain active and contribute according to their abilities.

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If we only see the elderly as a burden, we will miss out on a huge economic potential. The silver economy actually opens up opportunities for people to remain productive and independent in retirement.

Indonesia has already surpassed the international benchmark for an aging society, with nearly 12% of its population over 60. Projections indicate this number could reach 65.82 million by 2045. Panji advocates for an "active aging" concept, where retirees can continue to be mentors, entrepreneurs, or investors, thereby maintaining income streams and contributing to the economy. This requires not just financial preparation but also building productive assets and alternative income sources while still employed.

The bank's initiative aims to support this demographic shift by fostering an ecosystem that enables seniors to remain engaged and productive. This approach recognizes the substantial economic value that can be unlocked by empowering the elderly population to participate actively in various economic activities.

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The concept is active aging. People who retire can still be mentors, consultants, business actors, or carry out investments so they still have income.