Financing and Policy Strategies for Pensions in Indonesia

1. 2. 3. 2. Current situation in Indonesia Coverage Different schemes for civil servants, army and police and private-sector workers No coverage for informal economy workers. Benefits Labour Law (Severance and service reward pay): lump sum Provident Fund for private-sector workers: lump sum Pension for civil servants: periodical payments Finance Labour law: employers' direct compensations Provident Fund: external, individual accounts Pension: external, collective financing (redistribution) 5

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