Strengthening NTA as a Foundation for Intergenerational Development Policy

The Vice Chief Statistician of BPS RI, Sonny Harry Budiutomo Harmadi, delivered a presentation at the event “Dialogue Toward Intergenerational Well-being: A New Direction for Indonesian Policy at the End of the Demographic Transition”, organized by the Ministry of National Development Planning/Bappenas in Jakarta on Monday (6/4). This event served as a strategic forum to strengthen the use of National Transfer Accounts (NTA) as the basis for evidence-based development policy formulation.

During his presentation, Sonny emphasized that the NTA is a crucial tool for understanding intergenerational economic dynamics, particularly amid changes in Indonesia’s population structure as it enters the final phase of demographic transition. He explained that differences in consumption and income patterns across age groups result in a life cycle deficit among the young and the elderly, which is supported by a surplus among the working-age population.

The results of Indonesia’s 2024 NTA calculations show that total consumption exceeds labor income, leading to a life cycle deficit. This deficit is covered through intergenerational transfer mechanisms, both through private transfers within households and public transfers. Sonny also emphasized that the compilation of the NTA is currently still in the experimental statistical phase and is being continuously developed so that in the future it can become an official statistic that supports more targeted, measurable, and sustainable policy planning.

The dialogue was also attended by a number of high-ranking government officials, including the Coordinating Minister for Human Development and Cultural Affairs, the Minister of National Development Planning/Head of Bappenas, the Minister of Population and Family Development/Head of BKKBN, and the Minister of Micro, Small, and Medium Enterprises. Through this forum, the government is promoting the strengthening of data-driven policies to ensure sustainable development and intergenerational well-being in Indonesia.