Improving Veterans’ Competitiveness

Kompas

President Joko Widodo greets veterans after attending the Heroes\' Day Ceremony at the Heroes Monument in Surabaya, on Tuesday (10/11/2015).

Indonesian veterans are recognized under Law No. 15/2012 on veterans. The general provisions of the law define veterans as Indonesian citizens who were actively involved in the war of national independence during the active revolutionary period from 17 Aug. 1945 to 27 Dec. 1949.

Furthermore, those citizens who were involved in freeing West Papua during the Trikora Operation from 10 Dec. 1961 to 1 May 1963 are also considered veterans. This also applies to citizens who fought in the Dwikora Operation and the Seroja Operation between 21 May 1975 and 17 July 1976.

Considering these time frames, most Indonesian veterans today are in their old age. Veterans are categorized by age group according to the minimum age requirement of 50 years for a person to join the national veterans organization.

“Elderly” refers to an individual who has reached 60 years of age. In 2018, Indonesia had 24.49 million people in this age group, or 9.3 percent of the national population.

In terms of geographical distribution, three provinces have the largest elderly populations. In 2018, the provinces with the largest elderly populations were the Yogyakarta Special Region (13.9 percent), Central Java (12.9 percent) and East Java (12.5 percent). The next three provinces were Bali, North Sulawesi, West Sumatra, South Sulawesi and West Java.

Meanwhile, Indonesia had 139,500 veterans in 2019. Data at the Indonesian Veterans Legion (LVRI) shows that the provinces with the highest veterans populations were West Java (19.1 percent), East Java (12.2 percent) and South Sulawesi (10.3 percent), followed by Jakarta, Aceh, Central Java, East Nusa Tenggara and Bali.

The geographical distribution of the elderly population indicates that those regions with large elderly populations generally tend to have of a significant population of veterans. Therefore, veteran empowerment programs are inseparable from comprehensive programs for the elderly.

Kompas

The veterans attended the Heroes\' Day Ceremony at the Surabaya Heroes Monument, on Tuesday (10/11/2015).

Health quality

Indonesia is today seeing an increasingly aging population. Indonesia’s elderly population doubled between 1971 and 2018. In 2018, the country had 24.49 million senior citizens, or 9.27 percent of the national population. It is projected that the country will have an elderly population of 48.2 million by 2035.

On the one hand, an increase in life expectancy indicates improvements in health care and socioeconomic conditions of a country. On the other hand, however, an increase in the elderly population will affect the dependency ratio and the morbidity rate among senior citizens.

A dependency ratio is the proportion of the working-age population that supports those not in the labor force, such as children and the elderly. In 2018, the elderly made up 14.49 percent of the dependency ratio in Indonesia.

This means that every 100 working-age people were supporting 15 elderly people. This is an increase from the figure five years ago, when every 100 working-age people supported 13 elderly people.

In other words, approximately one in four elderly people are either ill or have poor health.

Apart from the dependency ratio, the increase in the number of elderly Indonesians will also affect the morbidity rate. The 2018 National Social and Economic Survey (Susenas) stated a morbidity rate of 25.99 percent among the elderly. This means that, 26 out of every 100 elderly people had poor health or an illness. In other words, approximately one in four elderly people are either ill or have poor health.

The Basic Health Survey showed that most elderly people have noncommunicable diseases such as hypertension, arthritis, stroke, chronic obstructive pulmonary disease and diabetes mellitus.

The prevalence of these diseases increases the older a person is. Therefore, the increased dependency ratio and morbidity rate among the elderly presents a challenge in the empowerment of senior citizens, including veterans.

KOMPAS/BAHANA PATRIA GUPTA

The veterans paid their respects in the commemoration of the Dutch flag tear at the Majapahit Hotel, Surabaya, East Java, Wednesday (19/9/2018).

Prosperous elderly

The government has issued a variety of policies and programs to improve social welfare for the elderly. Law No. 13/1998 on welfare for the elderly stipulates the provision of healthcare services for the elderly.

The government manages these services through various programs, such as the Elderly Family Development program of the National Population and Family Planning Board (BKKBN) and the Health Ministry’s Posyandu (Integrated Healthcare Posts) for the Elderly. The government also empowers the elderly by providing business loans to 22.29 percent of elderly households.

Regional governments have also launched their own programs, including the East Java and Bali administrations. The East Java administration, for instance, issued Regional Regulation No. 5/2007 on welfare for the elderly, while the Bali administration issued Regional Regulation No. 11/2018 on welfare for the elderly.

Bali province runs several programs on elderly empowerment, including the Day Care and productive economy business (UEP) programs for financial assistance, nursing homes, emergency care facilities, home care facilities and Social Assistance for the Neglected Elderly (ASLUT) program.

The UEP program provides Rp 1.5 million (US$104.73) in monthly funding and training workshops for senior citizens to develop their own businesses.

Independence

These empowerment programs aim to encourage independence and boost the competitiveness of senior citizens. Despite their advanced age, many senior citizens still maintain social capital and desire to be independent in terms of productivity and home ownership.

The Susenas 2018 data reflects this potential. In terms of education, the literacy rate among Indonesian senior citizens has grown from 76.42 percent in 2015 to 78.99 percent in 2018.

Literacy refers to the basic skills of reading and writing. Literate people have better access to information.

The second capital is productivity. The 2018 Elderly Population Statistics report showed that 49.79 percent of senior citizens, or 50 out of 100 people, continued to work. This means that one of every two persons continued to work in old age. The majority of elderly people actively take care of the household (33.3 percent).

In terms of the domicile of working senior citizens, most reside in rural areas. Furthermore, more elderly men continue to work (65.19 percent) compared to elderly women (35.8 percent).

The distribution of residential area is directly proportional to the distribution of professions among the working elderly. The majority of elderly people who work are in agriculture (54.23 percent), followed by the service sector (31.01 percent) and the industry sector (14.77 percent). The data shows that half of all elderly remain productive in old age.

As shelter is a basic need, home ownership helps reduce the elderly’s dependency on people of other age groups.

The third capital is home ownership. In 2018, almost all elderly people (92.54 percent) lived in homes they owned instead of rented houses or public housing. As shelter is a basic need, home ownership helps reduce the elderly’s dependency on people of other age groups.

Competitiveness

The skills that elderly people possess reflect their competitiveness. Elderly people, including veterans, have a huge potential in staying independent and productive in old age.

The potential of elderly people, including veterans, can be captured by providing them with the appropriate empowerment programs. Two things the government can consider are to provide free and comprehensive health insurance and improving the veteran allowance scheme.

A Kompas survey on 19-22 May 2020 found that most respondents favored free healthcare for veterans as the best means for improving their welfare.

This is because veterans and elderly people in general need support to maintain their independence. The 2018 Elderly Population Statistics shows that many elderly people still had no access to social insurance schemes, such as pensions, old-age insurance, work safety insurance, death benefits and allowances.

Regarding these social insurance schemes, only 13 out of 100 elderly households had social insurance (13.36 percent). This means that a majority of elderly people do not enjoy the benefits of social insurance in old age.

Healthy elderly people and veterans can increase their competitiveness and reduce their dependency on productive-age people.

Social insurance will also address the high morbidity rate among elderly people. Healthy elderly people and veterans can increase their competitiveness and reduce their dependency on productive-age people.

Increasing the elderly allowance will have similar benefits. The 2018 Elderly Population Statistics shows that most elderly households are supported by productive-age households (78.39 percent), while other elderly households are supported through money transfers (14.5 percent), pensions (6.48 percent) and investments (0.62 percent).

An aging population requires increased attention and more empowerment programs for the elderly, including veterans, retirees and retired military personnel. The government can develop various policies that focus on the specific needs of elderly people and on improving the competitiveness of elderly people.

The business loans that have been disbursed to 22.29 percent of elderly households must be expanded so that more elderly people and their families can be independent.

The growing number of senior citizens may not necessarily be a disadvantage. Elderly people are still keen to contribute to society, including through the professional sector. Government support in helping elderly people and veterans to lead quality lives is awaited for better quality of life. (KOMPAS R&D)