"The renewal of the law on pensions is very important by considering many aspects, either the budget, demographic issues, as well as socio-economic and political dynamics," Soesatyo stated at the first anniversary event of PPI here on Friday.
The MPR chairman remarked that Law No. 11 of 1969 must be renewed, as the benefits and provisions for pensions contained in it are no longer relevant to the current conditions of pensioners.
Hence, he said that it came as no surprise that the intended positive impact of the law has not been optimally felt by pensioners.
The MPR speaker highlighted the Mercer Chartered Financial Analyst (CFA) Institute report showing that Indonesia had a global pension index value of 49.2 in 2022 out of 44 pension systems around the world.
Soesatyo noted that the index value was lesser than 50.4 assessed during the previous period. Even so, he noted that the issue of pension fund crises was occurring in other countries and even in rich nations.
"Based on the Citi Group's study, developed countries also face pension (fund) problems, such as the United Kingdom, France, Germany, the United States, Japan, and Canada, are having a pension fund crisis of about US$78 trillion," he pointed out.
Meanwhile, since its establishment, Soesatyo said, the PPI has voiced its noble vision of welfare, social protection, income security, and individual capacity to realize the honor, protection, and fulfillment of retired state servants' rights to live.
"Even though it is very young, the presence of PPI has become an oasis for many retired state servants, who yearn for an organizational forum where they can keep contributing," he affirmed.
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Translator: Tri A, Kenzu
Editor: Sri Haryati
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