The Indonesian retirement space is continually evolving. Regulatory change around mandatory benefits is a constant. In addition, the introduction of new regulation regarding Development and Strengthening of the Financial Sector (“Pengembangan dan Penguatan Sektor Keuangan – P2SK”) is gradually gaining importance, changing the overall landscape of corporate pension schemes.

Corporations strive to strike a balance between providing effective and competitive retirement programs while managing cost and risk. A well-constructed investment in the right benefit mix can give your organization the financial edge it needs to recruit and retain the best talent, while helping your employees build the retirement savings, they need to become financially independent in retirement.

We are a top provider of retirement consulting and actuarial services in Indonesia. We have unparalleled experience assisting many of the country's largest retirement plan sponsors. Our in-depth knowledge in dealing with various types of pension arrangements, allows us to consistently deliver best practices and top-notch service quality.

Social Security

Social Security is managed by Badan Penyelenggara Jaminan Sosial Ketenagakerjaan (BPJS Ketenagakerjaan, “BPJS Ketenagakerjaan”) in which companies would pay monthly contribution to BPJS Ketenagakerjaan.

Supplementary Pension

UU NO. 6 /2023 and PP 35/2023
Mandatory pension benefit

• Defined Benefit as minimum
• Lump sum Benefit
• Unfunded Plan (no funding requirement)

Private Fund

The Severance Plan is required by law. The most recent law, Law No.6/2023 is effective as of 31 March 2023 which brings changes to the minimum severance benefit as previously regulated in Labor Law No.13/2003. Key changes:

1. Lower overall minimum severance benefit
2. Voluntary Pension Funds can now offset all types of severance benefits
3. Compensation Pay for Fixed-Term Contract Employees

Why WTW