Indonesia pension fund investment to stocks is still low, which is by 13% from the total investment of IDR 222.88 trillion. The investment portion is further behind than the global pension fund action with allocated investment by 40%-45% from total.
Roy Sembel, Dean of IPMI International Business School, said the low allocated investment didn’t give an optimal return. “The portion of global pension fund investment in stocks is 40%-45% while Indonesia pension fund is only 10%-15%. The average investment return in Indonesia reached 20% per year in the period of 1984-2014,” said Roy.
Indonesia, China, and India are three developing countries that have potential to make the highest economic growth than other countries in the world. The stock exchanges development is predicted to develop the economy as well. It could encourage a more liquid stock transaction.
According to Financial Services Authority of Indonesia, the biggest investment was placed in deposits of IDR 57.17 trillion or 26% from total per July 2016. The fund was placed in government bond of IDR 49.41 trillion or 22.17%, the corporation bond of IDR 47.7 trillion or 21.4% and stock of IDR 30 trillion or 13% from total. The remaining fund was placed in mutual fund, sukuk bond, property, EBA, and other investment. (*)
Add Comment