Dapen and Insurance Investments in Stocks Rise to 20 Percent, Purbaya: LQ45 Stocks Become a Priority

Minister of Finance Purbaya Yudhi Sadewa (Antara)

JAKARTA - The government plans to increase the limit for placing pension fund (Dapen) and insurance company investments in the capital market from the original 8 percent to 20 percent.

Minister of Finance Purbaya Yudhi Sadewa said that the implementation of the new rules will be carried out gradually and limited, with an initial focus on stocks included in the LQ45 index.

"We will free up another 20 percent, but in stocks that are not fried. Maybe for the first time we will limit it to LQ45," he told the media, Friday, January 30.

He explained that this policy would increase the flow of funds to the capital market compared to before, but it would still be accompanied by efforts to maintain the integrity and health of the market.

"We hope that excessive market manipulation or goreng-gorengan can be reduced as much as possible. So I don't want to release insurance to a manipulated market. It will be fixed," he said.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that the government would increase the investment limit for pension and insurance funds in the capital market from 8 percent to 20 percent.

He added that this policy was adjusted to the new regulations referring to the practices of member countries of the Organization for Economic Cooperation and Development (OECD).

"So we are getting closer to the international standards and Indonesia's commitment to adopt these standards so that we can maintain the emerging market standards and of course we hope that our capital market will be stronger, fair, competitive and transparent because this is a signal to the global market, but the fundamental factors of our economy remain strong and the government is not worried about the macroeconomic and fiscal conditions," he explained.