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Indonesia’s Demographic Bonus to Peak in 2037

November 24, 2020, 07.45 PM

JAKARTA, – Indonesia’s demographic bonus will reach its peak in 2037, according to the country’s Central Statistics Agency (BPS).

Ateng Hartono, Deputy of the Social Statistics Department at BPS, said that an Indonesian population at its prime productive years gives the nation an opportunity to improve national welfare and livelihoods.

A working-age population can harbor quality human capital that can be harnessed to contribute to national development plans.

Read also: Millennials Are Source of New MSMEs Creation, Says Bank Indonesia

“A demographic bonus is when the number of the working-age population, aged 15-64, exceeds the number of non-working-age population, be it 15 years or less or 65 years and above. With this bonus for the population, the economy can grow well.”

To optimize a demographic bonus, a country must support the expanding working-age population group with adequate facilities.

Ateng said that Brazil and South Africa were examples of two countries who missed out on their demographic bonus as both nations’ economies were at a critical juncture thus their governments could not take advantage of the situation.

Read also: Jokowi: Indonesia’s Covid-19 Vaccine Showcases Country’s Innovative Skills

Even with Indonesia’s demographic bonus expected to peak in 2037, the country could face a similar fate as Brazil and South Africa due to the coronavirus pandemic.

While the pandemic has triggered a crisis, it is nowhere close to the 1998 Asian Financial Crisis that Indonesia faced.

Therefore, Ateng underscores the importance of honing in on the Indonesian population and create a pool of competitive human capital.

“To take advantage of the demographic bonus, there must be cooperation from all levels of society and related institutions.”

(Writer: Elsa Catriana | Editor: Ambaranie Nadia Kemala Movanita)


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