IAOS-OECD 2018 conference, 19-21 September 2018, Paris. More information at: http://www.oecd.org/iaos2018/

1. The Measurement of Well-being Index
of Older People in Indonesia
Sri Hartini Rachmad & Ayesha Tantriana
BPS Statistics Indonesia
IOAS-OECD Conference “Better Statistics for Better Lives”
19-21 September 2018
Venue: OECD HQ, Paris, France

2. Research Background
The percentage of older people was 8,47 percent in 2015 and it keeps increasing year by year.
• Indonesia’s population is ageing
It consists of 13 indicators in 4 dimensions: economic, health, capability, and environment.
According to its index, Indonesia only gets 36,6 percent.
• According to Global Age-Watch Index 2015, Indonesia is in 74th
among 96 countries included
Composite index doesn’t only summarize all of the component indicators of well-being, but also
represent it only with one single value.
• The policy intervention needs a measurement not only in
national scale, but also in province level.

3. Older People
(United Nations, 1982)
Literature Review
Older people are people aged 60 years or over.
Indonesian constitution adopted the concept and
released a constitution regarding well-being of older
people in 1998.
There hasn’t been a contemporary measurement of
well-being index of older people in Indonesia.

4. Well-being
of Older
People
 Well-being is related to happiness, life quality,
and life satisfaction. Well-being is not only
acquired by older people themselves, but also
the way other people treat them. (Marian
Barnes, Beatrice Gahagan, dan Lizzie Ward
(2013))
 There are three characteristics about well-being
of older people (Midgley, Tracy, and Livermore
(2000)) :
Literature Review
1. older people’s basic needs: decent life, clothes, health service, etc.
2. spiritual needs such as family’s affection to live the rest of their lives.
3. social need which is good social relationship with their society

5. Dimension of
Well-being of
Older People
Adopted from the theory of Marian
Barnes, Beatrice Gahagan, dan Lizzie
Ward (2013). There are four dimensions
to construct the well-being index of
older people.
Social
Relationship
Resources
Health
Environmen
t

6. Social
Relationshi
p
1Indicators in Social activities
2
Taking care of
grandchildren
3
Looking after pets and
plantsDimension

7. Health
Life expectancy
at 60 years old
Health condition
Health rate
Ability to see
Ability to move
hands
Indicators in
Dimension
3
2
1
0
4
5
6
Ability to
communicate
Non Behavioral and
emotional disorder
Ability to walk
Ability to take care
of themselves
Ability to memorize /
concentrate
Ability to hear
7
8
9
1
1
1

8. Resource
s
Literacy rate
Education level
Non-poor person
Income security
Listening to radio
Indicators in
Dimension
3
2
1
0
4
5
6
Internet access
Exercise
Watching TV
Recreation
Reading or writing
Income insecurity
7
8
9
1
1
1
1
2
1
3
Access to
communication
Access to
information

9. 9
Environmen
t
3
Indicators in
4 Source of drinking water
5
Access to
electricity
Dimension
2
1
6
7 Fuel to cook
Decent sanitation
Healthy home
Possession of
house
Decent place to live

10. Data selection
Data normalization used in this research
is standardized (z-scores)
Data normalization
Factor analysis
Methodolo
gy
2
3
4
Building a theoritical framework1
6
7
5
1. Unequal weighting is used for factor
weight in a dimension.
2. Equal weighting is used for each
dimension
Weighting
Every dimension has its own score. Then, the
composite index will be built by calculating
the average of the dimension score
Aggregation
The purpose is to see whether the composite
index is good or not. Human Development
Index (HDI) is used in this step.
Correlate the composite index to other
composite index
(OECD, 2008)

11. Data Source
The 2015 SUPAS
(Intercensal Population
Survey)
The 2015 SUSENAS
(National Social and
Economic Survey)
Why?
All conducted by BPS Statistics Indonesia.
- Time reference of both data sources is similar
- Indicators collected in those surveys are compatible to
construct the index
- There is a special section for older people in the 2015
SUPAS questionnaire

12. 8,47%
The Indicator
Selection
Factor Analysis

13. The indicator selection process
shows the anti-image matrix which
can decide whether an indicator
deserves to be analyzed further or
not. In factor analysis, if the MSA
score of an indicator more than 0,5,
it means that the indicator deserves
to be analyzed further in factor
analysis.
Health Dimension
Reduced
Indicators
Life expectancy at 60 years old
Social Relationship Dimension
Social activities
Resources Dimension
Income security
Listening to radio

14. 8,47%
Factor
Construction
Factor Analysis

15. • The factor analysis will produce dominant factors in every dimension of the index.
• The number of dominant factors are decided based on the Kaiser criteria.
• If there’s only one dominant factor, the factor score would be the dimension score. If there is more than one
dominant factor, the score factors will be aggregated with weight.

16. Social Relationship
Social Relationship
• Education and lifestyle
• The Financial, Intelligence, and
Communication Capability
• Income Insecurity and Access to
Information
Resources
• Home Facility and Ownership
• Healthy Home and Access to
Electricity
Environment
• Motoric and emotional health
• Body and sensory health
Health

17. 8,47%
Composite Index
Result

18. 18
• Composite index is obtained by averaging each dimension score.
• Then the composite index score are transformed into cumulative probability with approach that the
distribution of the data are standardized normal (mean 0 and variance 1).
• Well-being index of older people which has been transformed then multiplied by 100 so the index score
will be in range 0-100.

19. Ranking of Provinces in
Indonesia Based on Well-
being Index of Older People
in 2015
Index score (percentage)
Province

20. Correlation between Well-
being Index of Older People
and Human Development
Index
HDI
Well-being of
Older People
Pearson correlation 0,641
Sig. (2-tailed) 0,000

21. 21
8,47%
The Classification of Provinces in
Indonesia Based on the Well-being
Index of Older People

22. Polaris
PowerPoint Template

23. Conclusion
1. By turning into ageing country, Indonesia has grown
the number of elderly population, the well-being of
older people should crucial agenda in the
development of Indonesia in general and provinces in
specific.
2. Policy intervention for human development should
prioritize the elderly development, especially in
provinces with low index score.
3. The number of provinces which are classified as less
wealthy are more than the number of wealthy
provinces, and are mostly located in East region of
Indonesia
“Happy, healthy. Higher
level of expectancy, higher
level of productivity”

24. Data-based policy of ageing development in province level would be
appropriate when it’s started from dimension with the lowest
achievement.
Policy Recommendation
Social
Relationship
Health Resources Environment

25. Thank you for your
attention
Sri Hartini Rachmad
shrachmat@yahoo.com
Ayesha Tantriana
ayeshatantriana@gmail.com
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