Abstract
Indonesia is experiencing the demographic bonus when the proportion of a working-age population is higher than a non-working-age population. This bonus will achieve its peak in 2030, then the proportion will decrease gradually. After that, Indonesia will face the demographic burden. Demographic bonus is very important to be utilized since it gives an opportunity to boost economic growth. However, after this bonus happens, the problems will arise in the demographic burden period. This paper will analyze demographic phenomena and offer several policies that can be taken by the government to attain the bonus and to lessen the bad impact of the burden using literature review analysis. According to the results of this paper, the government should focus on decreasing an unemployment rate, providing social infrastructure, and educating people.
Highlights
The population is dynamic in terms of number and growth
The demographic transition can lead to a demographic bonus when the proportion of a working-age population (15 to 64 years old) is larger than youth and old-age dependents
Radelet, Lindauer, and Block (2013) argued that the demographic bonus happens when children born in high birth rate era grow and be the large working-age population while at that time the birth rate decline so the proportion of working-age to all population is in a large amount
Summary
The population is dynamic in terms of number and growth. There are three factors causing the change in population: natality, mortality, and migration. The number of populations constanly increasing over the period, yet the growth rate decreases and eventually achieves a low stable level. This pattern is called the demographic transition. When the number of workers in this household is more than the number of non-workers, it causes big size pie and each member can enjoy a larger slice By analogy with this household, a country in the demographic bonus era has more resources to produce more output, boost its economy, and increase its prosperity by raising income per capita. The period when the demographic bonus ends and the declining of the proportion of working-age population causing economic problems is called demographic onus or demographic burden. This paper will discuss how to attain the demographic bonus in Indonesia by maximizing its benefit to support the economy and preparing to lessen the bad effect of demographic burden
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