Financing and Policy Strategies for Pensions in Indonesia

1. 2. 3. 1. Major dimensions of pension design Coverage (horizontal dimension) Beneficiaries vs. potential target beneficiaries Contributors vs. potential target contributors (in case of insurance schemes) Benefits (vertical dimension) Benefit level vs. poverty line / minimum wage Benefit level vs. average wage (in case of social insurance scheme) Financing (as a backbone) Long-term financial sustainability / equilibrium. 3

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