Silver Economy Poised to Become New Growth Engine as Indonesia's Population Ages

Indonesia is entering a phase of demographic change, with the proportion of elderly residents now exceeding 11 percent, according to Panji Irawan, CEO of PT Bank Mandiri Taspen (Bank Mantap). Speaking in Bali, Panji stated that the country must shift its economic development focus from the demographic bonus to the ‘silver economy’. He argued that senior citizens should not be positioned as an economic dependency burden, but rather as a new economic force possessing purchasing power, assets, experience, and continued productivity. Data shows that the elderly population has surpassed the 10 percent threshold, officially marking Indonesia as an ageing society. Panji noted that this demographic shift opens opportunities for growth in sectors such as health-tech, senior-friendly tourism, specialized nutrition products, and the senior living industry. He estimated that Indonesia’s elderly population will continue to rise, reaching approximately 65.82 million by 2045. To support this, Panji emphasized the need to strengthen the concept of active and productive ageing, allowing retirees to work flexibly as consultants, mentors, or entrepreneurs to supplement their pension income.