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We team with organizations worldwide to determine how to approach retirement plan design, funding, governance, administration and communication.

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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.

Retirement business in Indonesia

At WTW, we combine expertise to help organizations develop and manage retirement programs that meet their workforce needs.

  1. 01

    Our Services

    As the leading provider of retirement benefit consulting services to today’s top organisations, we help our clients manage cost, mitigate risks and enhance retirement benefits in a sustainable manner. We are Indonesia’s leading retirement brand, providing consulting and actuarial services to more than 500 companies in Indonesia.

    Our main consultants have an average of more than 10 years of experience in the pension sector in Willis Towers Watson and our senior consultants have strong expertise not only locally but globally.

    Highlights offered by our retirement division team include:

    1. Retirement design benchmark studies
    2. Retirement plan design and development
    3. Actuarial Valuation
      • Accounting Purposes for Defined Benefit schemes (Indonesian GAAP, IAS 19, ASC 715)
      • Actuarial Valuation for Funding Purposes

      Minister of Finance Regulation (Peraturan Menteri Keuangan) 227/PMK.01/2020 stipulates that limited liability companies may no longer provide actuarial services in Indonesia. Instead, such services may only be provided by businesses established as sole proprietors or partnerships.

      WTW has partnership with KKA Santhi Devi dan Ardianto Handoyo and Under the agreement we will provide technology support and knowledge transfer from our global actuarial and consulting business. The Partnership has agreed to follow Willis Towers Watson's professional standards, and in all respects, we believe that the services to be provided from this Partnership will be consistent with the level of service and high standards that our clients expect from us globally.

    4. Review and selection of service providers
    5. Pension scheme compliance and governance
    6. Asset liability management
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    Indonesia Retirement Landscape

    Indonesian retirement sources comes from 3 areas:

    1. 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.

      Jaminan Hari Tua

      • Defined Contribution (DC) Plan
      • Contribution (3.7% Employer ; 2.0% Employee)
      • Lump sum benefit

      Jaminan Pensiun

      • Defined benefit – annuity
      • Year of Contribution <=15 : DC
      • 1% x Year of Contribution x Average wages
      • Contribution (2% employer ; 1% employee) - will be reviewed regularly
    2. 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)

      Voluntary Pension Fund

      • Funded through approved pension funds – governed under the 1992 Pension Law and UU No. 4/2023 (P2SK)
      • Defined Benefit or Defined Contribution
      • Can be used to offset Mandatory pension benefit
    3. Private Fund

      Private Saving

      • 100% Employee Contribution
      • Individual Account: e.g. Personal Saving or DPLK-DC

    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


50 yrs Providing retirement consulting in Indonesia

500+ Clients receiving retirement service

4 Qualified actuaries and associates

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