Social Assistance for the Elderly: The Role of the Asistensi Sosial Lanjut Usia Terlantar Programme in Fighting Old Age Poverty

Working Paper 14 - 2014

Authors: Sri Moertiningsih Adioetomo, Fiona Howell, Andrea McPherson, Jan Priebe

ABSTRACT

Indonesia has undergone a demographic transition since the 1970s that has led to significant changes in the population age structure. Life expectancy increased from 45 years to 67 years. The number of elderly people (60 years and above) rose from about 5 million in 1970 to 18 million in 2010, and is projected to increase to over 80 million by 2050.

The economic situation of the elderly is precarious. In 2012, 12.65 percent of older people (60 years and above) lived below the official poverty line. Older people, especially those aged 70 and above, have the highest poverty rate among all population groups, 14.92 percent. At the same time, a much greater proportion of the elderly population officially classified as poor is vulnerable to falling into poverty.

Currently, the coverage of existing pension schemes for the elderly is very low. The proportion of older people in receipt of civil service and military pension schemes, the only formally available pensions in Indonesia, was 15.5 percent of the population aged 60 years and above in 2010. These pension benefits, available to government workers, civil servants, military personnel and formal sector employees only, are usually insufficient to cover the basic needs of retirees. The Government of Indonesia has recognised these gaps in the social insurance schemes and is taking actions to improve pension coverage. ASLUT, the current social assistance programme targeted directly at the elderly, started in 2006 in six provinces targeting 2,500 beneficiaries. It has subsequently expanded to all 34 provinces and increased the number of recipients to 26,500 beneficiaries in 2013.

Social Assistance for the Elderly: The Role of the Asistensi Sosial Lanjut Usia Terlantar Programme in Fighting Old Age Poverty examines empirically, both quantitatively and qualitatively, the socioeconomic conditions of poor elderly persons in Indonesia. In contrast to other reports, a particular focus is given to investigating the operations of ASLUT, Indonesia’s only targeted cash transfer programme for the elderly. By doing so, the report draws on a unique household survey of 2,200 elderly households from 11 provinces which was conducted by SurveyMETER and the Demographic Institute of the University of Indonesia on behalf of TNP2K in 2012.

To request copies of the report or for more information on the report, please contact the TNP2K Knowledge Management Unit (kmu@tnp2k.go.id)