Indonesia’s booming economy provides Australian banks and investment houses with a host of financial opportunities, particularly in its nascent pension system. Its retirement savings sector is set for rapid growth, which currently covers only 5 per cent of its workforce. In contrast, Australia’s two-tiered pension system is considered to be among the best in the world, covering almost 100 per cent of the workforce.
Indonesia does not have a significant government-funded social security system. Pensions are tied to one’s employer as a defined benefit or a defined contribution program.