DIGITAL INNOVATION ADOPTION AND FINANCIAL SUSTAINABILITY OF PENSION MANAGEMENT: EVIDENCE FROM BPJS KETENAGAKERJAAN’S JAMINAN HARI TUA PROGRAM IN INDONESIA

Abstract

This study investigates the role of digital innovation adoption in enhancing the financial sustainability of Indonesia’s pension management, with a specific focus on the Jaminan Hari Tua (JHT) program managed by BPJS Ketenagakerjaan. Indonesia’s defined-contribution pension system, established under Law No. 40 of 2004 on the National Social Security System (SJSN), aims to provide old age financial security amid rapid demographic shifts and economic volatility. Despite steady membership growth reaching an estimated 19.95 million active JHT participants by December 2025 the JHT program faces persistent challenges, including high rates of early withdrawals, low replacement ratios, and solvency pressures that threaten long-term fund resilience. Drawing on secondary data from BPJS Ketenagakerjaan Integrated Reports (2022–2025), OECD projections, and peer-reviewed literature, this research examines the independent variable of digital innovation adoption encompassing mobile app usage (Jamsostek Mobile/JMO), fintech integration for contributions and claims, and digital literacy platforms and its impact on the dependent variable, the financial sustainability index of the JHT fund. The index is measured through key indicators such as replacement ratio, solvency ratio, participant engagement levels, and long-term fund accumulation. The findings reveal that higher levels of digital innovation adoption significantly boost participant engagement, curb early withdrawals, and strengthen overall financial sustainability. For instance, JMO registered users grew from 17.74 million in 2022 to an estimated 29.30 million in 2025, coinciding with stable solvency ratios maintained near or above 99% and solid investment returns. Investment returns on JHT conventional reached 5.51% in 2025. Theoretically, the study integrates the Technology Acceptance Model (TAM) with sustainable finance frameworks to explain how perceived ease of use and usefulness of digital tools translate into behavioral changes that support fund resilience in defined-contribution systems. Practically, it offers actionable recommendations for BPJS Ketenagakerjaan to accelerate targeted digital transformation initiatives, thereby fostering inclusive financial resilience in