IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v12y2024i12p328-d1533225.html
   My bibliography  Save this article

Adequacy of the Pension System: A Qualitative Interview of Indonesian Civil Service Pensioners in Kapuas Regency

Author

Listed:
  • Abdul Hadi

    (Doctoral School of Economic and Regional Sciences, Hungarian University of Agriculture and Life Sciences, 2100 Gödöllo, Hungary)

  • Yogi Vidyattama

    (Canberra School of Politics, Economics and Society, University of Canberra, Canberra 2617, Australia)

  • Badriah Badriah

    (Master of Development Studies, Lambung Mangkurat University, Banjarmasin 70123, Indonesia)

  • Prihoda Emese

    (Institute of Agricultural and Food Economics, Szent Istvan Campus, Hungarian University of Agriculture and Life Sciences, 2100 Gödöllo, Hungary)

Abstract

Around three million pensioners receive the Indonesian civil service pension benefit. This benefit is the main source of income for the majority of civil service pensioners. This paper examines the adequacy of this pension benefit from the perspective of pensioners in Kapuas Regency. Through qualitative research, fifteen semi-structured interviews were conducted to investigate the role of pension benefits in maintaining the interviewees’ lifestyles and standards of living. All the interviewees perceived that the pension benefit could cover their basic needs, but for most of them, it only covered 25% of their total expenditures. Despite this, the replacement rate of the take-home pay from the pension benefit is still acceptable based on the ILO standard. While some can adjust to life with basic needs, others choose to find another source of income after retirement. Therefore, although the amount is still higher than the poverty line and the minimum wage, the findings suggest the retirement rate is considered meager.

Suggested Citation

  • Abdul Hadi & Yogi Vidyattama & Badriah Badriah & Prihoda Emese, 2024. "Adequacy of the Pension System: A Qualitative Interview of Indonesian Civil Service Pensioners in Kapuas Regency," Economies, MDPI, vol. 12(12), pages 1-19, November.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:12:p:328-:d:1533225
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/12/12/328/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/12/12/328/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philippe Jacques & Marie-Louise Leroux & Dalibor Stevanovic, 2021. "Poverty among the elderly: the role of public pension systems," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(1), pages 24-67, February.
    2. Jan Priebe, 2017. "Old‐age Poverty in Indonesia: Measurement Issues and Living Arrangements," Development and Change, International Institute of Social Studies, vol. 48(6), pages 1362-1385, November.
    3. Ahmad Irsan A. Moeis & Nachrowi Djalal Nachrowi & Aris Ananta & Vid Adrison, 2022. "A trade-off between old-age financial adequacy and state budget sustainability: Searching a government optimum solution to the pension system in Indonesia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2079176-207, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rajko Tomaš, 2022. "Measurement of the Concentration of Potential Quality of Life in Local Communities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 79-109, August.
    2. Fanny Salignac & Julien Hanoteau & Ioana Ramia, 2022. "Financial Resilience: A Way Forward Towards Economic Development in Developing Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 1-33, February.
    3. Ayesha Tantriana, 2024. "Poverty and vulnerability transitions in Indonesia before and during the COVID-19: insights from synthetic panels," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(4), pages 3215-3249, August.
    4. Yoko Niimi & Charles Yuji Horioka, 2023. "Elderly poverty and its measurement," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 29, pages 307-315, Edward Elgar Publishing.
    5. Koen Caminada & Kees Goudswaard & Qingqi Liu & Chen Wang & Jinxian Wang, 2024. "Determinants of Elderly Poverty in 21 European Countries, 1995-2022," LIS Working papers 882, LIS Cross-National Data Center in Luxembourg.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:12:y:2024:i:12:p:328-:d:1533225. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.