Invest Rp119.1 Trillion In Education Management Funds In SBN Up To Corporate Bonds, LPDP Aims For A 5.6 Percent Return

Illustration (Photo: Doc. Antara)

JAKARTA – The number of managed funds held by the Education Fund Management Institute (LPDP) continues to increase from year to year. The latest, the government-owned Public Service Agency (BLU) is projected to have a capital of IDR 119.1 trillion by the end of 2022.

The large capitalization value requires reliable fund management capabilities to ensure optimal returns so that they can be used for government strategic education programs.

LPDP Investment Director Muhammad Oriza said his party had developed a number of strategies to maximize the returns obtained. "Last year, our return was above the BI rate (Bank Indonesia interest rate) which was 3.5 percent, which was 5.6 percent, so our yield was indeed above the average," he told reporters via a virtual channel on Friday, 10 June.

According to Oriza, a number of LPDP funds are distributed to various investment instruments and are not confined to one particular type.

"If it's just a deposit, even though it's quite liquid, it's relatively small for a return of around 3 percent to 3.5 percent. For that we also place it in several sectors, such as state securities (SBN) and corporate bonds," he said.

Furthermore, Sri Mulyani's subordinates ensured that the management of investment funds was carried out with the principle of prudence and paying attention to aspects of financial accountability.

"Especially for corporate bonds, of course, placed on companies that have a high rating," he said.

For information, the recapitulation of LPDP funds at the end of last year was recorded at Rp99.1 trillion. The government through the Ministry of Finance has stated that it is committed to placing additional funds of Rp. 20 trillion which has been included in the 2022 state budget ceiling.