Indonesian Political, Business & Finance News

Indonesian Citizens Only Reach Peak Prosperity at Age 42

| Source: CNBC Translated from Indonesian | Economy
Indonesian Citizens Only Reach Peak Prosperity at Age 42
Image: CNBC

Indonesian citizens only begin to experience prosperous conditions or affluence at the age of 42. At that age, they are estimated to reach the peak of their life cycle. Based on BPS data, the peak life cycle for Indonesian citizens occurs at age 42, with an average per capita surplus of Rp33.36 million. This means there is an excess between income and consumption capacity amounting to that figure. Nevertheless, Indonesia as a whole experiences a life cycle deficit of Rp1,083.9 trillion. Deputy Head of the Central Statistics Agency Sonny Harry Budiutomo Harmadi, speaking at Bappenas in Jakarta on Monday (6/4/2026), stated that calculations show household consumption in Indonesia in 2024 amounted to Rp13,024.4 trillion, while labour income reached Rp11,940.5 trillion in 2024. “This means the total income obtained from work by our population is not yet sufficient to cover the total consumption of Indonesia’s population,” said Sonny. According to his presentation, the per capita consumption level of Indonesian citizens peaks at age 17, estimated at Rp57.48 million per capita. However, this large expenditure is not matched by income levels because they have not yet entered working age. Based on Sonny’s presentation, the age experiencing a life cycle deficit is 16 years old with Rp55.22 million per capita. Thus, young ages contribute the most to the life cycle deficit figures. The aggregate deficit for young ages is recorded at Rp3,482 trillion. This deficit level will decrease as age increases and the life cycle changes from being supported by parents to becoming independent workers. Sonny said the average youth deficit cycle will turn into a surplus category at age 25. On the other hand, the life cycle surplus occurs from age 25 to 60 with an aggregate value of Rp3,056 trillion. In general, the surplus range for Indonesian citizens lasts 35 years from age 25 to 60, or when entering old age. This is because elderly people in Indonesia have needs but no income.

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