Indonesia has officially entered an era of an ageing population. This\ndemographic shift is expected to increase the phenomenon of the\n\u2018sandwich generation\u2019, a group of productive-age individuals who must\nbear the needs of their children as well as their elderly parents. Data\nfrom the 2025 Intercensal Population Survey (SUPAS) shows the proportion\nof elderly residents in Indonesia has reached 11.97 percent of the total\npopulation. At the same time, the population growth rate has slowed to\n1.08 percent per year, while the Total Fertility Rate (TFR) has fallen\nto 2.13 children per woman, approaching the replacement level. The\ndependency ratio has also increased to 45.05.<\/p>\n
The Secretary of the Ministry of Population and Family\nDevelopment\/National Population and Family Planning Board (BKKBN), Budi\nSetiyono, stated that this change marks a shift in Indonesia\u2019s\npopulation age structure. On one hand, this condition reflects the\nsuccess of development, as people live longer, health quality improves,\nand mortality rates decline. On the other hand, the government warns of\nnew challenges, including increased needs for social protection for the\nelderly and a growing burden on productive-age families.<\/p>\n
These findings are reinforced by the results of the 2025 Family Data\nUpdate conducted by the ministry. A total of 25.17 million families, or\napproximately 33.98 percent of all recorded families, have at least one\nelderly family member. This means nearly one in three families in\nIndonesia currently lives with an elderly person. The condition shows\nthat the population ageing process is no longer just a long-term\nprojection but has become a daily reality faced by Indonesian families.\nMore and more families now have to meet the needs of two generations\nsimultaneously, raising dependent children while caring for ageing\nparents.<\/p>\n
In demographic studies, the rise of the sandwich generation is a\nconsequence of the demographic transition, namely changes in population\nstructure due to declining birth rates and increasing life expectancy.\nThis phenomenon also has economic implications. The Life Cycle\nHypothesis theory developed by Nobel laureate Franco Modigliani explains\nthat a person should ideally finance their old age through savings and\nassets accumulated during their productive years. However, in Indonesia,\nthe majority of workers are still in the informal sector and lack\nadequate pension protection, so living needs in old age still largely\ndepend on family support. Furthermore, the Intergenerational Transfer\nTheory explains that the family is the primary institution for\nintergenerational resource transfer. In Indonesian culture, children\nhave a responsibility to help their parents in old age. As the number of\nelderly increases while the cost of raising children also grows, the\neconomic pressure on the productive age group is expected to become\nheavier.<\/p>\n
The ministry warns that Indonesia needs to anticipate the risk of\n\u2018growing old before growing rich\u2019, a condition where a country enters an\nageing society before having a strong level of welfare and social\nprotection system. If this trend is not anticipated, more productive-age\nfamilies will have to allocate their income to meet the needs of both\nchildren and parents. In the long term, this condition has the potential\nto suppress household savings capacity, reduce family investment,\nincrease psychological pressure, and affect workforce productivity.<\/p>\n
To anticipate this, the ministry is developing the Family Data system\nas an early warning system for the potential increase in the sandwich\ngeneration. By combining data on the presence of elderly members,\ndependent children, and productive-age family heads, the government\nhopes to map areas requiring earlier intervention. In addition to\nstrengthening the old-age security system, the government also considers\nthe expansion of long-term health and care services for the elderly,\nimproved financial literacy, family-friendly employment policies, and\nstrengthened family development as necessary strategic agendas to be\naccelerated. The government is also promoting the concept of active\nageing so that the elderly remain healthy, independent, productive, and\nable to contribute to social and economic life. Through this approach,\nthe increase in the elderly population is not only seen as a growing\ndependency burden but also as an opportunity for the development of the\nsilver economy.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-enters-ageing-population-era-1786010000", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }