Continue Optimizing Pension Fund Restructuring, IFG Cooperation In Management Of Investment Funds Together With 10 SOEs

Photo: Doc. IFG

JAKARTA - Continuing the acceleration of the optimization of the management of pension funds (Dapen) within State-Owned Enterprises (BUMN), Indonesia Financial Group (IFG) and BUMN Founders of Dapen, have again signed a memorandum of understanding/MoU for the Joint Investment Fund Management of 10 SOEs Founding Dapen.

The initiative aims to optimize the good and prudent management of the BUMN Dapen, based on healthy and measurable investment management. This is done so that the BUMN Dapen can provide appropriate benefits to Dapen BUMN participants (benefit recipients) while still paying attention to the measurable capabilities of the founding company Dapen BUMN.

Present at the signing of the memorandum of understanding were Deputy Minister of BUMN Kartika Wirjoatmodjo, Deputy Commissioner for Insurance Supervision, Guarantee, and Retirement Fund of the Financial Services Authority Iwan Pasila, Deputy for Law and Law, Robertus Billitea, Deputy President Director of IFG Haru Koesmahargyo, IFG Business Director Pantro Pander Silitonga, several Directorial Representatives of BUMN Founding Dapen, as well as 10 Board of Directors from BUMN Founder Dapen who signed the Joint Investment Fund Management Cooperation MoU, including PT Aneka Tambang (Persero) Tbk, PT Bukit Asam Tbk, PT Jasa Marga (Persero) Tbk, PT Kimia Farma Tbk, PT Krakata Steel (Persero) Tbk, State Forestry Public Company (Perum Perhutani), PT Pegadaian (Persero), PT Pelabuhan Indonesia (Persero), PT Pos Indonesia (Persero) and PT Pupuk Sriwidjaja Palembang (Pusri).

Deputy Minister of SOEs Kartika Wirjoatmodjo in his speech revealed that since 2022, the Ministry of SOEs has initiated the restructuring of the management of BUMN Dapen in order to ensure the benefits received by BUMN employees. This is motivated by the results of a thorough research from the management of BUMN Dapen, which indicates many challenges.

Among these challenges are promises for high returns to beneficiaries, while the yield rate (yield) obtained by the founding company Dapen BUMN is still below the market interest rate, and the actuarial interest rate tends to be high. With these conditions, Dapen BUMN has the potential to not be able to fulfill its promise to beneficiaries, who are employees of BUMN itself.

"BUMN must be an example of a company that has good governance, has high integrity, and complies with applicable rules and regulations, including the Pension Fund Act," he said.

Kartika added that state-owned companies in the management of Dapen investment should be managed by parties who have competence and expertise in their fields. Cooperation with IFG will make it easier for companies to manage BUMN Dapen, especially based on an assessment of liabilities and measurable actuarials.

"Dappen's management should not be a last priority, because there are legal and moral responsibilities. Hopefully, the signing of this cooperation will be an example for other companies." he said.

The signing of a memorandum of understanding for the management of Damen BUMN Bersama investment assets between IFG and 10 SOEs Founding the Pension Fund is an IFG initiative to ensure long-term benefits of BUMN Dapen through healthy investment management so that it can still fulfill the rights of retired SOEs proportionally and measurably.

The initial initiative for the Management of Joint Investment Funds was previously carried out with 8 SOEs on December 22, 2022, including PT Angkasa Pura I, PT Asuransi Jasa Indonesia (Jasindo), PT Asuransi Losses Jasa Raharja (Jasa Raharja), PT Nindya Karya (Persero), Perum Jasa Tirta II, Perum Peruri, PT Taspen (Persero) and PT Wijaya Karya (Persero) Tbk.

IFG Deputy President Director Haru Koesmahargyo said IFG is fully committed to carrying out the mandate given by the Ministry of SOEs for optimal, healthy, and sustainable investment management of BUMN Dapen. IFG through its holding member PT Bahana TCW Investment Management (Bacana TCW) will assist founding company Dapen BUMN in managing its investment assets with the KPD (Financial Management Contract) scheme, which can provide sustainable added value for founding companies and beneficiaries.

Bahana TCW is one of the largest investment manager companies in Indonesia with all its managed funds reaching IDR 55 trillion and is ranked 1 of the largest AUM in the Mutual Fund Industry as of September 2023. This is supported by the management of mutual fund products of IDR 47 trillion and fund management contract products (KPD) of IDR 8 trillion.

In the Pension Fund Industry, Bahana TCW has been experienced managing Dapen BUMN since 1999 or more than 23 years. The performance of fund management so far can exceed the specified benchmark. Currently, Bahana TCW has managed 10 Dapen BUMN with total managed funds of IDR 2 trillion and 4 Private Dapens with a total managed fund of IDR 200 billion.

"For 18 SOEs Founder of Dapen who have collaborated with IFG, we will ensure that Dapen's investment management is connected to a larger market and on an economical scale. We will look for the best investment instruments in the market by negotiating more profitable prices. The availability of a professional fund management team with a proven and reliable track record will ensure the implementation of a disciplined investment process and of course by prioritizing the implementation of the Liability Driven Investment (LDI) investment strategy to mitigate liabilities risk while maintaining adequacy and asset returns in the long term," Haru said.