Jamsostek to increase bonds in 2004 asset composition<\/p>\n
Sandy Darmosumarto, The Jakarta Post, West Java<\/p>\n
State-owned social security firm PT Jamsostek will shift more
\nof its investable funds in 2004 from deposits and stocks to
\ngovernment bonds amid declining interest rates and a possible
\nvolatile stock market due to the elections next year.<\/p>\n
The company's investment director, Samuel Tobing, told The
\nJakarta Post that the company chose to put more money into
\ngovernment bonds because they carried the least default risk.<\/p>\n
He said the firm planned to reduce the portion of its
\ninvestment in deposits to 52 percent next year from the current
\n58 percent.<\/p>\n
The portion of investment in bonds will be increased to 35
\npercent from 30 percent at present. In addition, the portion of
\nstock investment will be reduced from 21 percent to between 10
\npercent and 15 percent.<\/p>\n
\"Deposits will still account for the largest segment of
\nassets. Of the total amount of bonds, 70 percent will be
\ngovernment bonds and 30 percent will be corporate bonds,\" he
\ncommented.<\/p>\n
Jamsostek's total assets in the current year reach Rp 25
\ntrillion (US$2.9 billion). Samuel expects this figure to reach Rp
\n30 trillion next year.<\/p>\n
Jamsostek also plans to raise investment in mutual funds to Rp
\n300 billion next year, from around Rp 200 billion.<\/p>\n
\"The yield on investment this year is 14.5 percent, higher
\nthan the 14.21 percent target. We hope to reach an investment
\nprofit of Rp 3.4 trillion this year,\" said Samuel.<\/p>\n
He went on to say that next year's yield was projected to
\ndecline to around 10 percent because interest on deposits, the
\nlargest segment of its assets, is expected to decrease to between
\n6.9 percent and 7 percent.<\/p>\n
Company president Achmad Junaidi said that Jamsostek put a
\nlarge amount of funds in stocks this year, which is the most
\nprofitable instrument for the company amid the steady rise in the
\nstock market index.<\/p>\n
\"Perhaps the rising market momentum will stop once the index
\napproaches 700 ... The most profitable financial instruments in
\n2004 will be bonds, followed by stocks,\" Achmad said.<\/p>\n
Another plan of Jamsostek's is to engage in joint ventures, in
\nwhich Samuel expects the company will use its land assets to
\ngenerate additional funds.<\/p>\n
\"We will put our land up for sale. However, if the price is
\nuncompetitive we will engage in joint ventures in which Jamsostek
\nwill provide the plots of land to developers,\" he said.<\/p>\n
Financial director Widjokongko Puspoyo told the Post that the
\ncompany's net profit next year was not expected to be more than
\nthe current year's due to declining interest rates.<\/p>\n
\"We will earn an estimated net profit of around Rp 500 billion
\nthis year, while total revenue is estimated at Rp 2.7 trillion,\"
\nhe commented.<\/p>\n
Jamsostek funds currently feature in two investigations of
\nalleged fraud involving state Bank Rakyat Indonesia (BRI). In the
\nRp 294 billion and Rp 200 billion fraud cases, funds from
\nJamsostek were transferred to accounts belonging to a third
\nparty.<\/p>\n
With respect to the Rp 294 billion case, Achmad commented that
\nonly Rp 94 billion of the total was taken from his company's
\nworkers insurance fund (Rp 70 billion) and the firm's welfare
\ncooperative foundation (Rp 24 billion).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jamsostek-to-increase-bonds-in-2004-asset-composition-1447893297",
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