TANGERANG, Banten, West Java (ILO News) – As retirement approaches, many workers face uncertainty about their financial security and future livelihood. While some may have savings or access to social protection schemes, such as Indonesia’s Old Age Security (JHT), these are often not enough to ensure a stable and fulfilling post-employment life. Without proper planning, retirement can lead to financial dependence and a loss of purpose.
Recognizing the importance of retirement readiness for workers, the ILO’s through its Promoting SME Enterprises through Improved Entrepreneurs’ Access to Financial Services (Promise II Impact), in partnership with the Confederation of All Indonesian Trade Unions (KSPSI)-ASEAN Trade Union Confederation (ATUC), had delivered two batches of targeted entrepreneurial training for trade union members approaching retirement in May and September 2025.
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We view retirement preparation as a critical responsibility… To support this, our National Executive Board provides stimulus funds to participants who present the most promising retirement business plans.
Andi Gani Nena Wea, President of KSPSI-ATUC
Using the ILO’s Start Your Business (SYB) module, the Training of Beneficiaries (ToB) aimed to enhance participants’ understanding of entrepreneurship, strengthen their skills in developing business ideas and plans, and support a mindset shift from employee to entrepreneur. Facilitated by an ILO master trainer and co-facilitated by a KSPSI-ATUC trainer who had completed a previous SYB training programme, the five-day ToB training benefited a total of 50 KSPSI-ATUC members from four affiliated federations: Chemical, Energy and Mining (KEP); Textile, Garment and Leather (TSK); Metal, Electronics and Machinery (LEM); and Tobacco, Food and Beverage (RTMM).
“We view retirement preparation as a critical responsibility,” stated Andi Gani Nena Wea, President of KSPSI-ATUC. “Our members must be encouraged to plan for this phase of life so they can remain independent and avoid relying on their families. To support this, our National Executive Board provides stimulus funds to participants who present the most promising retirement business plans.”
The President of KSPSI-ATUC provided the first round of financial support and franchise business opportunities to the four top participants from the initial training batch to help them start their own businesses. These participants later shared their experiences and best practices with members of the second training group.
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In Indonesia, retirement preparation programmes are typically offered by large and medium-sized formal enterprises. Smaller companies, however, often lack the capacity to provide such support, leaving workers to seek external training opportunities. This disparity underscores the need for trade unions to play a more active role in equipping their members for life beyond employment.
“This training enables trade unions to contribute meaningfully to economic development,” explained Djauhari Sitorus, ILO Project Manager for Promise II Impact. “By promoting long-term savings and investment, it enhances financial security and fosters a sense of stability among workers. This, in turn, improves productivity and strengthens the overall quality of the labour force.”
During the training, union members learned how to come up with business ideas and turn them into real plans. These plans included how to make and sell their products, how much money they would need, what equipment or tools were required and how to officially register their businesses. By the end of the programme, participants had created various business ideas and plans. More importantly, they left the training feeling more hopeful and confident about their future after retirement.
By promoting long-term savings and investment, it enhances financial security and fosters a sense of stability among workers. This, in turn, improves productivity and strengthens the overall quality of the labour force.
Djauhari Sitorus, ILO Project Manager for Promise II Impact
Beyond individual empowerment, Abdul Hakim, ILO Programme Officer, noted that the SYB training contributes to broader institutional and societal benefits. Union members who establish businesses are more likely to uphold the Fundamental Principles and Rights at Work (FPRW), having experienced firsthand the challenges of employment. Their commitment to fair labour practices can also position them as role models within their communities.
“Entrepreneurial union members who respect labour standards can inspire younger workers to engage with trade unions,” noted Abdul. “This helps cultivate a business environment rooted in compliance and integrity, reinforcing the role of unions in promoting decent work and sustainable development.”