{
    "success": true,
    "data": {
        "id": 1831800,
        "msgid": "constitutional-court-rules-voluntary-pension-funds-can-be-withdrawn-in-full-1782806025",
        "date": "2026-06-30 14:12:24",
        "title": "Constitutional Court Rules Voluntary Pension Funds Can Be Withdrawn in Full",
        "author": "",
        "source": "DETIK",
        "tags": "",
        "topic": "Legal",
        "summary": "Indonesia's Constitutional Court has partially granted a judicial review, ruling that participants in voluntary pension schemes are now entitled to withdraw their entire benefits in a lump sum. The decision amends the Financial Sector Development and Strengthening Law, which previously limited initial lump-sum withdrawals to 20 per cent and mandated periodic payments. The court also urged the government to harmonise pension fund regulations with broader labour and social security laws.",
        "content": "<p>The Constitutional Court (MK) has amended the rules regarding the\ndisbursement of voluntary pension funds, which are paid for by workers\nthemselves. The court removed the provision that limited the first\nwithdrawal to a maximum of 20 per cent and now allows pension benefits\nto be withdrawn in a lump sum.<\/p>\n<p>\u201cGranting the petitioners\u2019 request in part,\u201d read the ruling for case\nnumber 139\/PUU-XXIII\/2025, as seen on the court\u2019s website on Tuesday\n(30\/6\/2026).<\/p>\n<p>The petition was filed by Alfonsius Londoran and others. The\npetitioners challenged Article 161 paragraph (2) and Article 164\nparagraph (2) of Law Number 4 of 2023 concerning the Development and\nStrengthening of the Financial Sector.<\/p>\n<p>The challenged articles stated:<\/p>\n<p>Article 161 paragraph (2): Payment of Pension Benefits for\nParticipants, Widows\/Widowers, or children must be made\nperiodically.<\/p>\n<p>Article 164 paragraph (2): Pension Fund regulations may contain\nprovisions governing the option of paying Pension Benefits for the first\ntime in a lump sum of a maximum of 20% of the pension benefits.<\/p>\n<p>The petitioners requested that the court declare these articles\nunconstitutional unless interpreted to allow for full lump-sum payments\nfor voluntary pension participants.<\/p>\n<p>In its ruling, the MK partially granted the petition. The court\nstated that pension benefits must be payable either in a lump sum or\nperiodically. \u201cThe Court has emphasised the necessity of periodic\npayments for pension fund participants, without ruling out the\npossibility of lump-sum payments provided certain conditions are met,\none of which is regulated in Article 164 of Law 4\/2023,\u201d the court\nstated. The MK also stressed the importance of establishing a separate\nLabour Law outside the Job Creation Law to improve pension regulation\nand called for harmonisation between pension fund rules and social\nsecurity regulations.<\/p>\n<p>The court\u2019s binding ruling declared that Article 161 paragraph (2)\nand Article 164 paragraph (2) of Law Number 4 of 2023 are conditionally\nunconstitutional unless interpreted to allow voluntary pension fund\nparticipants, widows\/widowers, or children to receive benefits in a lump\nsum or periodically, in accordance with their wishes and prevailing\nlaws.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/constitutional-court-rules-voluntary-pension-funds-can-be-withdrawn-in-full-1782806025",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}