In a recent episode of CAKEPP on TVOneNews’ YouTube channel, Dr. Vishnu Juwono, a public policy expert and lecturer at the Faculty of Administrative Sciences, Universitas Indonesia (FIA UI), addressed the issue of extending the retirement age for civil servants (ASN) based on their positions.

According to Dr. Vishnu, the government’s policy is intended to align with increased life expectancy and reduce disparities in retirement ages across different ranks.

“The current pension system still operates on a pay-as-you-go model, where the government funds pensions from the current budget,” explained Dr. Vishnu.

He warned that extending the retirement age without accompanying pension system reforms could increase the burden on the state budget. Therefore, the fiscal impact of this policy must be carefully assessed.

“This policy could slow down job rotation and limit opportunities for younger civil servants,” he added.

Dr. Vishnu noted that while the policy may benefit employees nearing retirement by allowing them to work longer, it could also lead to career stagnation and reduce motivation among younger staff.

“Only about 30% of civil servants demonstrate excellent performance, based on data from KMNPAN-RB,” he said.

He emphasized that Indonesia’s tax ratio remains low compared to countries like the Philippines and Thailand. In contrast, nations such as Japan and Germany have been more successful due to their focus on performance-based evaluations, service digitalization, and comprehensive pension reform. According to him, bureaucratic effectiveness depends not on retirement age, but on holistic reforms.

Dr. Vishnu also recommended evaluating the effectiveness of such policies through employee satisfaction and service quality. He urged the government to strike a balance between incentives and fiscal sustainability, while promoting workforce regeneration through regular evaluations, mentorship, and digitalization.

“In the end, it’s not about age—it’s about performance,” he concluded.