Demographic Dividend

Indonesia is undergoing a demographic transition with more people at productive ages (15-64) than unproductive ages (below 15 and above 65). If coupled with high investment in human capital, this demographic dividend can result in accelerated development. Integrated and inclusive policies that support investment in young people and women will ensure great returns to a nation’s growth and human development—ensuring that no one is left behind.

Indonesia is undergoing a demographic transition with more people at productive ages (15-64) than unproductive ages (below 15 and above 65). If coupled with high investment in human capital, this demographic dividend can result in accelerated development. Integrated and inclusive policies that support investment in young people and women will ensure great returns to a nation’s growth and human development—ensuring that no one is left behind.

UNFPA supports the Government to successfully harness the demographic dividend through upstream policy engagement. knowledge management, and evidence-based policy particularly related to Sexual Reproductive Health, Youth, Gender and Population and Development.

The term ‘Demographic Dividend’ is incorporated in Indonesia’s 2015-2019 National Medium Term Development Plan. The  demographic dividend is important to be mainstreamed into other sectoral development plans and targets at the national and sub-national levels. UNFPA supports the National Development Planning Agency to identify effective policies to harness Demographic Dividend through in-depth analysis of National Transfer Accounts (NTAs), based on changing age structures .  The NTA will provide the aggregate and per capita information on income and expenditure, especially on health and education, by age group over time.  The construction will be based on population projections and the other national accounts produced by BPS Statistics Indonesia.

UNFPA will support policy dialogue among relevant decision makers to incorporate the demographic evidence for national and sub-national policy making and programme interventions.