Demographic Determinants of Population Ageing in Indonesia

Fadiah Dini Putri, Tomi Sah () and Siti Nadya Dindatami
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Fadiah Dini Putri: The University of Melbourne, Melbourne School of Population and Global Health
Tomi Sah: Tsinghua University, School of Public Policy and Management
Siti Nadya Dindatami: Victoria University of Wellington, Wellington School of Business and Government

A chapter in Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024), 2024, pp 141-148 from Springer

Abstract: Abstract The increasing ageing population has become a major global issue impacting developed and developing nations, including Indonesia. This study aims to analyze the demographic determinants of ageing population in Indonesia, specifically examining the effects of total fertility rate (TFR), life expectancy, and net migration. Using time series data from 1985 to 2021, the research explores how these variables influence the proportion of individuals aged 65 and above. Multiple linear regression was employed to identify the relationships between the variables and the ageing population. This study found that declining TFR and increasing life expectancy are Indonesia’s primary drivers of population ageing. The reduction in TFR has resulted in fewer births, leading to a shrinking younger population and an increasing proportion of elderly individuals, thus creating an imbalance in the population structure. Rising life expectancy, supported by advancements in healthcare and living conditions, has further contributed to this demographic shift by enabling people to live longer. Conversely, net migration has an insignificant impact on population ageing, as its scale and influence are too small to affect Indonesia’s demographic composition. These findings highlight the need for policymakers to address the socio-economic challenges of an ageing population, particularly regarding healthcare, pensions, and labour force sustainability.

Keywords: Ageing Population; Total Fertility Rate; Life Expectancy; Migration (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-614-7_19

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DOI: 10.2991/978-94-6463-614-7_19

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