New Implementing Regulations On Indonesia's Pension And Old Age Security Programs

On 30 June 2015, the Indonesian government issued Government Regulation No. 45 of 2015 on the Management of the Pension Security Program ("GR 45/2015") and Government Regulation No. 46 of 2015 on the Management of the Old Age Security Program ("GR 46/2015"). With these regulations, Indonesia's new pension security program is introduced and the old age security program has been updated. Both regulations came into effect on 1 July 2015.

Pension Security

GR 45/2015 requires all employers other than state ministries etc. to enroll all of their employees in the pension security program ("Pension Program"). Participants in the Pension Program can be (i) salary earners (ie employees) or (ii) non-salary earners. Participation in the pension program starts with the first contribution being paid into the pension program.