OJK pushes for expanded pension fund participation among informal workers

The Financial Services Authority (OJK) is pressing the pension fund industry to develop programs that can accommodate a larger number of informal workers, thereby expanding public access to old-age protection. Ogi Prastomiyono, Head of the Supervisory Executive Body for Insurance, Guarantees, and Pension Funds at OJK, highlighted the persistent barriers faced by informal workers in accessing pension programs due to their unstable income.

"Informal workers have uncertain contribution payments and irregular incomes," Prastomiyono explained. "They contribute when they have the money. If not, they don't." He further noted that informal workers are not exclusively low-income earners; the category also includes professionals like athletes, artists, and self-employed individuals whose incomes fluctuate significantly.

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Informal workers have uncertain contribution payments and irregular incomes. They contribute when they have the money. If not, they don't.

Consequently, OJK believes that more flexible pension schemes are necessary, allowing informal workers to make contributions when their earnings permit. The authority is encouraging Financial Institution Pension Funds (DPLK) to develop services that enable these workers to participate in pension programs. "So, they can pay when they receive payment, perhaps creating a retirement program. That is not yet operational, but we are pushing for DPLK to have applications that allow informal workers to participate," Prastomiyono stated.

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So, they can pay when they receive payment, perhaps creating a retirement program. That is not yet operational, but we are pushing for DPLK to have applications that allow informal workers to participate.

Beyond the informal sector, OJK also emphasizes the importance of expanding participation for formal workers who already have employer-provided pension plans. These individuals could benefit from additional pension programs to enhance their retirement benefits. Prastomiyono pointed out that current average pension benefits in Indonesia are often insufficient, typically amounting to only 10 to 50 percent of a worker's final income, which is inadequate for maintaining their pre-retirement standard of living.

Expanding participation, particularly within the informal sector, is a key focus for OJK's national pension fund development roadmap. The authority sees significant potential for BPJS Ketenagakerjaan (Employment Social Security), DPLK, and Employer Pension Funds (DPPK) to broaden coverage for old-age security programs. OJK has also facilitated the establishment of new DPLKs, including the first by an investment manager, aiming to foster competition, innovation, and wider pension program participation. As of July 2026, total pension fund assets in Indonesia reached Rp 1,699.9 trillion, with projections for annual growth between 9–11 percent in 2026.

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If calculated, the average pension benefit for Indonesians is only 10 to 50 percent of their last income. The money is not enough.