SOE Ministry Building. Photo: Ricardo / JPNN
jpnn.com, JAKARTA – Professor of Finance and Capital Markets, Faculty of Economics and Business, University of Indonesia (FEB UI) Budi Frensidy said the adequacy ratio of BUMN DPPK (employer pension funds) that was below 100 percent was due to higher salary growth of the assumptions and returns that are lower than the budget target.
The latest data shows that BUMN pension funds reach Rp. 149 trillion or 52 percent of the total pension funds in Indonesia which are valued at Rp. 289 trillion.
Of the BUMN pension fund amounting to Rp 149 trillion, around 68% or Rp 101 trillion is DPPK MP. However, about 67 percent of the DPPK MP BUMN had a fund adequacy ratio (RKD) below 100 percent.
“So, the dapen (pension fund) before fully funded could change in one year or some time into the future unfunded,“Said Budi.
To overcome this RKD below 100 percent, there needs to be an additional injection or deposit so that this deficiency can be covered.
Meanwhile, regarding BUMN pension fund investment, Budi said it must be more liquid.
Several instruments on the financial market can be options, provided that they have a small risk, such as SBN, fixed income, SUN, SBSN, ORI, and AAA rated corporate bonds.
In addition, pension funds can be placed on the money market, such as deposits.
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