Reforming Indonesia's pension system
Indonesia's nascent capital markets stand to benefit significantly from a thriving pension industry. Now is the time to reform the pensions system, while it has a vibrant economy, rapidly rising income, and a young and growing workforce. The author suggests three main reforms. First, to reconsider the role of mandatory defined contribution (Jamsostek) plan. Second, to make employer sponsored pensions more attractive and affordable by: simplifying and expediting registration and approval processes, raising the retirement age; not directly taxing pensions; limiting political interference; permitting pension funds to invest abroad; use term annuities or phased withdrawals instead of life annuities; and adopting an adequate government vesting policy as a model for the private sector. The third suggested reform is to contain the fiscal burden of the civil service pension plans.
|Date of creation:||31 Oct 1996|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Davis, E.P. & DEC, 1993. "The structure, regulation, and performance of pension funds in nine industrial countries," Policy Research Working Paper Series 1229, The World Bank.
- Feldstein, Martin S, 1978.
"The Welfare Cost of Capital Income Taxation,"
Journal of Political Economy,
University of Chicago Press, vol. 86(2), pages S29-51, April.
- Boskin, Michael J, 1977. "Social Security and Retirement Decisions," Economic Inquiry, Western Economic Association International, vol. 15(1), pages 1-25, January.
- Vittas, Dimitri, 1993. "Swiss Chilanpore : the way forward for pension reform?," Policy Research Working Paper Series 1093, The World Bank.
- Bodie, Zvi, 1990.
"Pensions as Retirement Income Insurance,"
Journal of Economic Literature,
American Economic Association, vol. 28(1), pages 28-49, March.
- Alicia H. Munnell & Frederick O. Yohn, 1991. "What is the impact of pensions on saving?," Working Papers 91-5, Federal Reserve Bank of Boston.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1677. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.