Jakarta, CNBC Indonesia \u2014 Indonesia\u2019s Audit Board (BPK) has\nidentified a number of problems in the management of pension and old-age\nbenefits for state civil servants (ASN), including members of the\nIndonesian National Armed Forces (TNI) and National Police (Polri).<\/p>\n
\u201cPerformance audits of the management of pension and old-age benefits\nfor ASN, TNI and Polri identified nine findings containing 13 instances\nof ineffectiveness,\u201d according to the Summary of Audit Results for the\nFirst Semester of 2026, cited on Tuesday (13 October 2026).<\/p>\n
In the document, BPK said the design and policies of the pension and\nold-age benefit programmes did not yet provide adequate protection for a\ncontinuous income in retirement.<\/p>\n
This was reflected, among other things, in the fact that participant\ncontributions and the returns accumulated on them were not yet\nsufficient to fund pension and old-age benefits on a sustainable\nbasis.<\/p>\n
The government, as the employer, had also not met its contribution\nobligations. Meanwhile, the pension replacement ratio \u2014 the value of\npension benefits compared with income while working \u2014 stood at around 9%\nto 33%, below the International Labour Organization\u2019s (ILO) recommended\nminimum of 40%.<\/p>\n
BPK also noted that there was no funding scheme for the pension and\nold-age benefit programmes for civil servants employed by local\ngovernment agencies using funds from regional budgets (APBD), and that\nthe government had not established a roadmap for transforming the\nprogrammes.<\/p>\n
These shortcomings risk increasing the burden on the state budget\n(APBN), eroding old-age benefit assets and threatening the\nsustainability of claim payments. They could also prevent the\ntransformation from achieving its aim of ensuring continuous income\nprotection in retirement.<\/p>\n
\u201cBPK concludes that the management of pension and old-age benefits\nfor ASN, TNI and Polri during 2023\u20132025 was less than effective in\nprotecting the continuity of income in retirement,\u201d the audit report\nsaid.<\/p>\n
BPK further said the programmes lacked adequate institutional\nsupport. Among other issues, it said there was no clear division of\nresponsibility among government bodies for managing pensioner data, and\nno alignment in the rules governing the Financial Services Authority\u2019s\n(OJK) oversight of pension programme administrators.<\/p>\n
As a result, pension databases were not yet adequately integrated,\nwhile the programmes administered by state-owned PT Taspen (Persero)\nrisked not being overseen by an external regulator in the financial\nservices sector.<\/p>\n
\u201cBPK recommends that the Finance Minister, in their capacity as State\nGeneral Treasurer, coordinate with the Minister for Administrative and\nBureaucratic Reform, the Head of the National Civil Service Agency and\nother relevant ministries and agencies to propose a government\nregulation setting out the duties, functions and powers of the parties\ninvolved in managing pension and old-age benefits, including those\nresponsible for pensioner databases and oversight,\u201d BPK said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/audit-finds-problems-with-civil-servants-pension-scheme-risking-pressure-on-state-budget-1791863433", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }