As Indonesia moves closer to becoming an ageing society, discussions around older persons are often confined to care systems, dependency, and social protection. This insights by Arunala Institute & Foundation challenges that narrative by reframing ageing as a source of economic and social opportunity, not merely a policy burden .

Titled Inclusive and Productive Aging Ecosystem: From Care System to Empowerment and Market-Driven Opportunities, the paper highlights a critical but often overlooked reality: many Indonesians aged 58 and above remain healthy, skilled, and willing to contribute productively. The challenge lies not in their capacity, but in the absence of enabling systemsthat recognize, support, and value their participation.

Why Elderly Empowerment Matters

Indonesia’s current labor framework generally sets retirement between the ages of 58–60. In practice, however, many older Indonesians continue working—either by choice or necessity. This reveals a fundamental policy gap: ageing does not automatically equal incapacity. Rigid retirement systems risk sidelining valuable human capital and deepening economic vulnerability among older citizens.

The paper argues that elderly empowerment must become a national agenda, centered on decent work, lifelong productivity, dignity, and social inclusion. Empowering older adults is not only a matter of welfare—it is essential for resilience in a society facing shrinking support ratios and demographic change.

A Market-Driven Approach to Productive Ageing

Moving beyond welfare dependency, the paper proposes a market-driven ecosystem that positions elderly participation as an asset. Key pathways include:

Recognizing the “silver market” as a driver of innovation and job creation, spanning health technology, financial services, housing, leisure, and lifelong learning.
Supporting age-friendly entrepreneurship, by expanding access to credit, mentorship, and digital tools for older entrepreneurs and micro-businesses.
Re-skilling and knowledge transfer, leveraging older workers as trainers, mentors, and consultants to retain institutional knowledge across industries.
Enabling decent informal work, through policies that improve safety, fair wages, and access to social protection for elderly workers outside the formal sector.

Together, these approaches position productive ageing not as an exception, but as a core pillar of Indonesia’s future economy.

Why This Paper Matters

As Indonesia advances toward its 2045 vision, strengthening human capital across all ages is imperative. This paper provides a forward-looking framework for policymakers, businesses, and civil society to rethink how ageing, work, and markets intersect.

By shifting the narrative from care to empowerment, the paper invites a broader conversation: how Indonesia can build an inclusive, resilient, and market-ready ageing ecosystem that values contribution across the life course.

From Care to Empowerment: Building an Inclusive and Productive Aging Ecosystem in Indonesia