Friday, June 24, 2011

Global Window: Indonesia opts for early retirement to trim bureaucracy

INDONESIA'S ministry of finance has recommended an early retirement programme with suitable compensation package for retiring civil servants. The move is mainly to trim the country's bulging bureaucracy, a media report said. The scheme is interesting as the debate on retirement age and suitable packages for those opting for voluntary retirement has been continuing in a number of countries including India. A few months ago, there were rumours in Delhi's power corridors that the retirement age for Central government employees would be risen to 62 from the current level of 60 years. It's expected that the UPA-II may time the move politically and raise retirement age sometime later to woo over five million Central government employees.
In Indonesia, the directorate general of the treasury is expected to suggest a voluntary early retirement programme for 50-55 year-old employees, and they would get huge benefits as part of their severance payments.
At present, there are about 4.7 million permanent civil servants in Indonesia, excluding the honorary employees.
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