Comparison of the Pension Systems between Iceland, Netherland, and Thailand: Lessons for the Pension System Reform of Indonesian Civil Servants

  • Kari Septiana Dewi Faculty of Administrative Sciences, Universitas Indonesia
  • Pantius Drahen Soeling Faculty of Administrative Sciences, Universitas Indonesia
Keywords: Pension System; Indonesian Civil Servant; Pension Reform; Netherlands; Iceland; Thailand


The current implementation of the civil servant (PNS) pension program still has many problems that have a major impact on the adequacy and sustainability of Indonesia's pension system. This study aims to take lessons from a comparison of pension systems in Iceland, Netherland, Thailand, and Indonesia. The results of the discussion provide several recommendations or suggestions for civil servant pension programs which are currently in the process of being reformed. The Indonesian government needs to consider the high transition costs and the performance of pension funds, as happened in Netherland if it wants to change the pension scheme to a defined contribution. Based on this study, the fully funded method that is planned to be implemented does not always reduce the funding burden. Hence, learning from Thailand, civil servant pensioners should consider using a partially funded financing system as an initial step for civil servant pension reform. In addition, the government also needs to consider increasing the minimum retirement age which is determined based on the life expectancy of the Indonesian people. To support this proposal policy (increase the retirement age), so Indonesian government needs also plan programs related to the development of employee skills and competencies. This is very important to keep older employees productive in the workplace or organization.


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How to Cite
Dewi, K. S., & Soeling, P. D. (2023). Comparison of the Pension Systems between Iceland, Netherland, and Thailand: Lessons for the Pension System Reform of Indonesian Civil Servants. International Journal of Social Science Research and Review, 6(3), 174-187.