Tapera Fund Will Be Managed By Investment Manager, BP Tapera: Safe

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The Public Housing Savings Fund (Tapera) will be managed by the Investment Manager (MI). Although these funds are managed by a third party, the Tapera management body ensures the funds will be managed safely.

Deputy Commissioner of BP Tapera for the Fertilization of Tapera Funds, Gatut Subadio, confirmed that his party would choose a trusted person to manage the Tapera funds. It is intended that these funds will be managed safely and reliably.

"To ensure or answer public doubts about how the money is? Will MI manage their funds properly? They are a profession supervised by the authorities," he said, in a virtual discussion entitled 'Optimizing the Management of the Tapera Fund in the Middle of Decreasing Trust in the Financial Sector', Friday, 28 August.

Gatut said, there is no need for the public to worry about managing funds using an investment manager. This is because MI as a professional group is required to report activities to the Financial Services Authority (OJK).

"They have to report their activities to the OJK because they are involved in a collective investment contract (KIK). Actually, institutionally, starting from planning to monitoring, they have actually been arranged in such a way, so that they can reduce concerns in the community," he explained.

Fund management using this investment manager is based on Law Number 4 of 2016 concerning Public Housing Savings (Tapera) and Government Regulation Number 25 of 2020 concerning the Implementation of Public Housing Savings (Tapera).

To ensure funds are managed properly, said Gatut, a Tapera Committee has been formed chaired by the Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono, and under him are the Minister of Finance Sri Mulyani Indrawati, Minister of Manpower Ida Fauziyah, and OJK Chairman Wimboh Santoso.

"Institutionally, the Tapera has a Tapera Committee where we have to report to the Tapera Committee. This is all regulated in the articles of the Tapera Law," he said.

Three Tapera Fund Management Strategies

Gatut said, his party implemented three strategies to optimize the management of Tapera funds in the form of investment contracts to maintain the program's sustainability. One of them is asset allocation.

Furthermore, Gatut explained, in the allocation of assets, the division is carried out, namely fertilization, utilization and reserves. Where the management of fertilization through a Collective Investment Contract (KIK) is carried out by considering the target yield, at least the average government bank deposit within 1 year on a sustainable basis.

Second, the principle of asset liability management. Gatut said that the liability referred to is the money of the participants with various characteristics. Starting from the difference in age to income.

"This is our concern in applying what percentage will be used for utilization, what percentage is used for fertilization," he explained.

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Because the maturity profile matching between participants and KIK on investment assets is different, namely the money market KIK to maintain liquidity and the needs of pension participants. Furthermore, KIK medium and long term fixed income to match housing financing needs refers to the housing finance target.

Meanwhile, the short-to-medium term KIK is meant to match the need to maintain fair returns, both for fertilization funds and individual participant funds.

Lastly is risk management. Agus said, this is important for Tapera to apply the principles for management. Later, MI as the manager of the Tapera fund will adhere to the established risk management principles.

"Because when we compiled the KIK, we provided investment guidelines. So there are all principles that are followed by MI, Custodian and Distribution Banks," he said.

In this risk management, said Gatut, there are determination of placement limits per party, determination of investment asset criteria with a certain standard, and determination of investment limits for KIK management investment managers.

"The performance of investment managers will be continuously monitored and evaluated, so this gives confidence that the management of Tapera funds, which is actually public funds, is carried out through a collaboration through existing professions," he explained.

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