Indonesian Political, Business & Finance News

Government may extend mandatory retirement age

| Source: JP

Government may extend mandatory retirement age

JAKARTA (JP): The government is currently exploring the
possibility of extending the mandatory retirement age for civil
servants from 55 to 65 years old, Antara reported yesterday.

State Minister for Administrative Reforms T.B. Silalahi said
the plan is being discussed jointly by his office, the Civil
Service Administration Agency, the State Secretariat and the
Ministry of Home Affairs.

The plan will be submitted to President Soeharto next year,
and a ruling is expect soon after, Silalahi said.

"We're exploring this possibility on the assumption that at
55, a person is still productive, is more mature and
professional.

"It would be a pity to send them into retirement," he said.

Under the present system, all civil servants must retire when
they turn 55. The service of first echelon officials however can
be extended until they turn 60.

Government researchers can be retained until they are 65.

Silalahi disclosed that under the plan, the service of
government researchers may be extended until they are 70.

The minister denied suggestions that the extension was planned
by current officials so that they could stay in office.

"Don't interpret this as the wish of officials bent on keeping
their positions for as long as they can," he said.

This is being done to anticipate the country's future needs
for more mature and professional people, Silalahi said.

He also said average life expectancy in Indonesia has improved
significantly in the last few decades.

Responding to questions, Silalahi said the government is not
likely to increase the salaries of civil servants next year.

Ideally, the government should give at least a 10 percent
hike, he said. "But, after the finance minister calculated
government's resources, it looked like we couldn't give the pay
increase," he said. (emb)

View JSON | Print