OJK Closes 3 Pension Fund Companies, Association: The Number Can Increase Because It Is Difficult To Find Dues

OJK (Photo: Doc. Between)

JAKARTA - Downsizing of the number of pension fund management companies continues to occur. Not long ago, the Financial Services Authority (OJK) stated that it had revoked the business license of The Superior Pension Fund Of Indah Cahaya, Pension Fund of Employees of RS Budi Kemuliaan and Pension Fund of Pfizer Indonesia.

The three entities are considered by OJK to be unable to meet the elements of investment and good and sound financial management.

"The dissolution was done on the request of the founder of the pension fund for the efficiency and effectiveness of the implementation of the pension program," said Deputy Commissioner of Nonbank Financial Industry Supervisory (IKNB) OJK Anggar Budhi Nuraini some time ago.

According to him, the decisive step is based on the Regulation of the Financial Services Authority Number 9/POJK.05/2014 concerning the Dissolution and Liquidation of Pension Funds.

Furthermore, Fencing asks customers not to panic because the rights and obligations of the three financial services institutions will be resolved through the Financial Institution Pension Fund (DPLK) by complying with applicable regulations.

"OJK urges pension fund participants to remain calm," he said.

Separately, Executive Director of the Indonesian Pension Fund Association (ADPI) Bambang Sri Muljadi said the main factor that makes pension fund management companies collapse is the difficulty of collecting dues from participants because the average engaged in this industry is small scale.

In fact, Bambang projects the number of players entering the sector will continue to shrink in the future.

"It's going to be less and less," he added.

However, in terms of performance Bambang said the business sector is increasingly competitive with the expected growth figures that will occur in 2021.

"I believe managed funds can still grow 6 to 7 per cent this year despite the shadow of volatility," he said.

For information, pension fund companies until the end of the first quarter of 2021 recorded as many as 214 companies. This number is less compared to the same period the previous year with 219 companies.