Bukit Asam Strengthens Its Pension Fund Management System In Accordance With Applicable Legislations

Photo: Doc. Antara

JAKARTA - PT Bukit Asam Tbk (PTBA) continues to strengthen its pension fund management system in accordance with laws and regulations that apply in the field of pension funds, including updating policies.

"PT Bukit Asam Tbk (PTBA) as the founder of the Bukit Asam Pension Fund has compiled master governance in accordance with the Financial Services Authority Regulation (POJK) Number 15/POJK.05/2019 concerning Management of Pension Funds and updating investment directives in accordance with the laws and regulations in force in the field of pension funds," said Bukit Asam Pension Fund President Director Erdawati in a statement in Jakarta, quoted from Antara, Wednesday, April 24.

Erdawati said that as a derivative of the main governance, the Bukit Asam Pension Fund has compiled and updated the governance policy, Guidelines for Standard Operations (PSO) and Operational Engineering Guidelines (PTO) which are adjusted to applicable regulations.

"The policy is used as a guideline and reference in carrying out the operational activities of the Bukit Asam Pension Fund," said Erdawati.

He explained that every placement of funds and release of investment funds for Bukit Asam Pension Funds must be guided by the Bukit Asam Pension Fund Regulation (PDP-BA), Investment Directives (AI), Investment Governance, Investment PTO and laws and regulations that apply in the field of Pension Funds.

In addition, the placement of funds and the release of investment must also be carried out based on a study outlined in the Investment Analysis Memorandum (MAI) and discussed at the Investment Committee Meeting.

Currently, Erdawati continued, Bukit Asam Pension Fund has placed investment assets that provide fixed income and a measurable level of risk by taking into account liquidity needs in fulfilling the obligation to pay pension benefits to the participants.

"In the investment placement, the Bukit Asam Pension Fund maintains the principle of prudence and always refers to the applicable provisions in the Bukit Asam Pension Fund, namely Investment Directives (AI), Investment Governance, Investment PTOs," said Erdawati.

Erdawati further said that by the end of 2022, a complete test of the restructuring of pension funds had been carried out by the Ministry of SOEs. The results of the due diligence have been reported to the Ministry of SOEs.

"As a follow-up to the due diligence, PTBA has appointed an Actuary Consultant to conduct a study and roadmap for restructuring and strengthening the Pension Fund. The roadmap for restructuring and strengthening the Bukit Asam Pension Fund has been submitted by PTBA to MIND ID," said Erdawati.

Based on the audited Financial Report as of December 31, 2023, the overall investment portfolio of Bukit Asam Pension Funds is in a low risk condition. This is reflected in the liquid investment portfolio which has reached 87 percent, consisting of Deposito, Government Securities (SBN), Bonds and Corporate Sukuk.

He added that 13 percent were non-liquid investment assets in the form of stocks, mutual funds, direct participation and property.

"Based on the Actuary Report as of December 31, 2023, the Bukit Asam Pension Fund is in the quality of first level funding with a Funding Ratio (RKD) of 100.42 percent," added Erdawati.