Can Remote Work Save Indonesia’s Sandwich Generation? | Changing Ageing in Asia

Indonesians, Intergenerational Finance, and the Role of Social Enterprise

Key Concepts: Sandwich Generation, Intergenerational Financial Burden, Digital Skills Gap, Social Enterprise (Commerce), Financial Resilience, Rural-Urban Migration, DBS Foundation, Digital Entrepreneurship.

1. The Intergenerational Financial Burden in Indonesia

Indonesia faces a unique demographic and economic challenge: a significant portion of its young adult population (25-45 years old) is part of the “sandwich generation.” This means they are financially responsible for supporting both their aging parents and their own children. The video highlights that almost one in two adults in this age group financially supports at least one other generation. This creates a substantial barrier to personal financial planning and retirement savings. Unlike many Asian countries experiencing rapid aging, Indonesia still has a relatively young population, but lacks robust social safety nets and formal pension systems for the elderly, placing the burden on families.

2. Economic Pressures and Rural-Urban Migration

The video details the economic pressures driving this situation. Youth unemployment in Indonesia is more than three times the national average, and in rural areas, 71% of young people are employed in low-wage, informal jobs (delivery, factory work, farm work). This prompts migration to urban areas in search of better opportunities, but the video points out that moving to a city doesn’t guarantee higher earnings. Manan Eka’s story exemplifies this: despite moving to a city, he secured only a low-skilled, one-year contract job with no career progression or security, earning only 78 Singapore dollars more per month than his father. This illustrates the limited impact of migration on improving financial stability.

3. The Consequences of Limited Savings

The lack of savings during working years has long-term consequences. As stated in the video, “When the youth grow older, they are not financially protected because like they don't have the money when they were still on the working age. They have to shift the burden someone else, their children.” This perpetuates a cycle of intergenerational financial dependency.

4. Commerce: A Social Enterprise Solution

Bayou Novi, recognizing this problem, founded Commerce, a social enterprise designed to equip Indonesian youth with digital skills and economic opportunities without requiring them to leave their homes and families. The core idea is to create a “talent pool” of digitally skilled workers that Indonesian brands can recruit.

5. Commerce’s Training and Impact

Commerce provides training in digital marketing, customer service for online marketplaces, and even live streaming. Manan Eka’s experience demonstrates the impact: he quit his city job and returned to his village to learn digital marketing through Commerce. This new income stream proved crucial when his mother required emergency surgery.

Another example is City, who, after Commerce training, secured a job managing sales, inventory, and marketing, while simultaneously launching her own laundry business. This diversification of income allows her to support her parents and save for her own future, and she is now motivated to learn about financial planning and investment.

As of 2020, Commerce had trained over 1,300 youths, collaborated with over 750 brands, and distributed more than 970,000 Singapore dollars in income to rural youths, supported by a grant from the DBS Foundation.

6. DBS Foundation’s Support and Expansion Initiatives

The DBS Foundation provided crucial support to Commerce, enabling its expansion. Furthermore, DBS Foundation partnered with Decoding, an edtech platform, to launch the DBS Foundation Coding Camp, a tech training program aimed at equipping Indonesian youth with in-demand digital skills and connecting them with job opportunities. This initiative aims to address the digital skills gap and pave the way for better-paying careers.

7. The Importance of Technology Infrastructure

The video emphasizes the importance of technology infrastructure in rural areas. As stated, “If the villages can sustain with technology infrastructure, the economy in the district will bigger and bigger.” Access to digital skills is seen as a significant opportunity for youth in all regions of Indonesia. The video concludes with the idea that empowering youths to become independent digital entrepreneurs will help them empower others.

8. Notable Quotes

• “I’m thinking about how I can train real youths to mastering e-commerce skill. I see the opportunity that digital are rising up so much after people mastering this e-commerce skill.” – Bayou Novi, Founder of Commerce.
• “If the village can gaining job opportunity, they are have a bigger future.” – Commentator regarding the impact of Commerce.
• “If the villages can sustain with technology infrastructure, the economy in the district will bigger and bigger.” – Commentator regarding the importance of infrastructure.

Conclusion:

The video highlights a critical socio-economic challenge in Indonesia – the intergenerational financial burden faced by the “sandwich generation.” The lack of social safety nets and limited economic opportunities in rural areas contribute to this problem. Social enterprises like Commerce, supported by initiatives like the DBS Foundation Coding Camp, offer a promising solution by equipping youth with in-demand digital skills, enabling them to generate income, support their families, and build a financially secure future. The key takeaway is that investing in digital skills and fostering entrepreneurship in rural areas is crucial for breaking the cycle of financial dependency and future-proofing Indonesia’s workforce.