Indonesia has officially become an ageing society. Data from the national statistics agency’s intercensal survey (SUPAS) shows the share of the population aged 60 and above reached 11.97%, surpassing the 10% threshold used internationally to define the demographic shift. Projections see the number of older Indonesians rising to 65.82 million by 2045. The milestone is forcing a rethink of retirement finance, with state-linked lender PT Bank Mandiri Taspen (Bank Mantap) positioning itself at the centre of the response.

Viewed from Jakarta, the bank’s strategy rests on two pillars: lowering its cost of funds to sustain pensioner lending, and promoting what executives call the ‘silver economy’. Bank Mantap is aggressively growing its current account and savings account (CASA) base to reduce reliance on expensive deposits. By end-May 2026, CASA had surged 52.97% year-on-year to Rp15.67 trillion, lifting the CASA ratio to 26.32% from a historical range of 20–23%. The target is 30–40%. Cheaper funding briefly pushed the cost of funds down to 4.02%, a record low, before tight market liquidity and rising benchmark rates reversed some of the gains. The bank’s loan-to-funding ratio stands at 85–90%, down from 95–96% a year earlier, signalling a conservative liquidity posture.

Alongside the balance-sheet engineering, Bank Mantap is preparing to launch a programme called ‘Life Begins at 40’, which urges Indonesians to start building retirement assets with roughly 18 years of working life remaining. Its director, Panji Irawan, argues that the silver economy can turn older citizens from perceived dependants into productive participants—as mentors, entrepreneurs or investors—if they build passive-income streams early. The bank is expanding digital services, including its Movin app and QRIS transactions, and exploring partnerships with Pegadaian for gold services and crowdfunding platforms to attract deposits beyond its traditional pensioner base.

This domestic push echoes a broader re-examination of retirement planning. US-based authors Edward McQuarrie and William Bernstein, in their book on retirement, stress that most generic advice is flawed; individuals should first define their desired post-work lifestyle, then save at least 20% of annual income and avoid lifestyle inflation. Middle Eastern financial adviser Hassan Hatoum similarly insists that a successful plan begins not with a portfolio target but with questions about where and how one intends to live. The next milestone to watch is the formal rollout of Bank Mantap’s ‘Life Begins at 40’ initiative and whether it can lift the CASA ratio towards the 30% mark amid persistent tight liquidity.