Recently, the Indonesian Civil Servants Corps (Korpri) submitted a proposal to raise the retirement age of state civil servants (ASN) to 70 years. The proposal was addressed to President Prabowo Subianto, Speaker of the House of Representatives (DPR) Puan Maharani, and Minister of Administrative and Bureaucratic Reform (PAN-RB) Rini Widiyantini. The rationale behind the proposed increase from 58 to 70 years is to improve civil servants’ welfare and to retain functional expertise longer.
Dr. Subarsono, a lecturer at Universitas Gadjah Mada (UGM) in Public Policy and Management, believes the proposal comes at an inopportune time, as it overlooks the current economic and social realities.
“Indonesia’s economic condition is currently not in the best shape, with government spending increasing annually. Even President Prabowo Subianto has launched an economic efficiency program for ministries and local governments,” said Dr. Subarsono on Wednesday, Jun. 11, 2025.
If the proposal were approved, he argued, it could add further strain to the national budget (APBN).
Dr. Subarsono cited examples of retirement policies and gross domestic product (GDP) across ASEAN countries.
In Vietnam, the retirement age for civil servants is 61, with a GDP per capita of USD 4,282.
In Thailand, civil servants retire at 60 with a GDP of USD 7,182 and a population of just 71 million.
In comparison, Indonesia, where the retirement age is currently 58, has a GDP per capita of USD 4,876 and a population of 285 million.
“Before increasing the retirement age, one must consider the country’s economic capacity and population size,” he said.
Dr. Subarsono also refuted the argument that extending the retirement age would help preserve specialized expertise.
According to him, the effectiveness of public services is not directly linked to the retirement age.
Instead, it depends on civil servants’ competencies, the integration of digital tools, and their social sensitivity and empathy toward the public and service users.
“To improve the effectiveness of public services, I believe the mindset of civil servants must shift, from being power-oriented to becoming service-oriented,” Dr. Subarsono emphasized.
From a social standpoint, Dr. Subarsono noted that Indonesia has a large population, with the majority being young people, many of whom aspire to become civil servants.
Extending the retirement age to 70 could reduce opportunities for new ASN recruitment and impede bureaucratic regeneration.
If the proposal is eventually accepted, Dr. Subarsono suggested implementing it gradually.
“For example, in 2026, increase the retirement age by one year, in 2027, another year, and so on. This gradual approach should align with the country’s slow but steady economic growth,” the expert explained.
Finally, Dr. Subarsono concluded that the proposal to extend the ASN retirement age should be postponed until Indonesia’s economy shows stronger growth.
He stressed that the country’s current financial condition is not robust enough to bear the additional fiscal burden.
“Public policies cannot satisfy everyone, but they must ensure that the national economy does not decline,” Dr. Subarsono stated.
Author: Tiefany
Editor: Gusti Grehenson
Post-editor: Lintang Andwyna
Illustration: Freepik