Jakarta, CNBC Indonesia – Former IDX President Director, Hasan Zein Mahmud, criticized the recommendation of the Supreme Audit Agency (BPK) to cut losses on six stocks that are part of the BPJS Employment portfolio.
The six stocks include PT Salim Ivomas Pratama Tbk (SIMP), PT Krakatau Steel Tbk (KRAS), PT Garuda Indonesia Tbk (GIAA), PT Astra Agro Lestari Tbk (AALI), PT London Sumatra Indonesia Tbk (LSIP), and PT Indo Tambangraya Megah Tbk (ITMG).
Hasan assessed that the BPK should be an independent and free high state institution, having the authority to examine the management and responsibilities of state finances, but the product of the implementation of its duties is in the form of opinions, advice, recommendations, recommendations. Not command.
“Cut loss and profit taking are technical terms. When spoken by BPK it will connote command,” he said.
According to Hasan, the implementation of cut loss and take profit will directly affect the financial performance of BPJS. In addition, it can directly affect the realization of profit and loss and will have an impact on state finances.
“Can BPK be held responsible for losses or lost profit opportunities suffered by BPJS, as a result of the cut loss/take profit order?” he said.
Not only that, said Hasan, orders for cut loss and take profit to institutions as big as BPJS will affect market opinions and perceptions and could potentially cause market turmoil. This will ultimately result in losses for the general investor community.
Hasan emphasized that the iron law of financial investment is no risk, no return. No pain no gain. No guts no glory”. If BPJS cannot afford to lose in investing, BP Jamsostek can invest all of its funds in risk free assets such as Government Bonds denominated in rupiah. However, the instrument is certainly not optimal for the welfare of the workforce.
“A sound investment decision must take into account the financial condition, investment objectives, including the investment horizon, targets to be achieved and the maximum level of risk that can be taken without compromising the convenience of fulfilling BPJS obligations to customers,” he explained.
According to him, institutional investors like BPJS are certainly very familiar with the concept of duration assets and duration liabilities. BPJS certainly can predict the amount and timing of cash inflows it will receive from participants.
In addition, it can estimate the amount and schedule of cash outflows to fulfill its obligations to the participants. Then choose an instrument/combination of instruments that is able to fulfill its obligations plus excess yields that can be used as reserves.
BPJS-class institutions, he said, also have clear and detailed SOPs to fulfill all the rules and opportunities to achieve their mission well.
“In my opinion, it would be wiser if the BPK examination focused on the possibility of dishonesty in managing funds, on whether the quality of the SOPs was adequate for fund security and achieving targets, on whether the SOPs were implemented honestly, seriously and consistently, and on whether the human resources owned competent enough to accept responsibility.”
Separately, previously the Deputy Director for Public Relations and Inter-Agency of BPJamsostek, Irvansyah Utoh Banja said, the company always followed up on BPK’s recommendations regarding investment and operations related to the examination period of the second semester of 2020.
“BPK’s recommendation to take profit or cut loss of certain stocks has been reviewed internally and policies related to cut loss have been proposed to be included in government regulations governing BPJamsostek investment governance,” said Utoh, to CNBC Indonesia, Thursday (24/6). /2021).
He added, throughout 2020, BP Jamsostek recorded an increase in Social Security Fund (DJS) assets of 13.2% from the previous year and provided an Old Age Security (JHT) yield of 5.59% above the average government bank deposit interest of 3.63. %.
“BPJamsostek is committed to always improving investment management governance and providing optimal development results to all participants,” he said.
(hps / hps)
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