Taspen wants higher investment limit<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State owned pension firm PT Taspen has asked for an exemption
\nfrom a government ruling that places limits on the size of
\ninvestments made by pension and insurance companies, arguing that
\nthe company was not yet ready to apply the ruling.<\/p>\n
The new ruling, which has been effective since Aug. 1, bans
\npension or insurance firms from investing more than 20 percent of
\ntheir money in one bank or entity to help minimize risk in case
\nthe latter goes bankrupt or defaults on its obligations.<\/p>\n
\"We're in the process of appealing (to the government), so
\nthat the (investment) limit can be higher than 20 percent,\"
\nTaspen president Achmad Subianto told reporters on Monday.<\/p>\n
He explained that the dispensation was needed because there
\nare now fewer banks where pension and insurance firms could put
\ntheir money safely as a result of the government's bank
\nrestructuring program, which reduced the number of banks,
\nparticularly state-owned ones.<\/p>\n
State banks are generally deemed a safer investment target
\nsince they are owned by the government.<\/p>\n
\"We used to have plenty of state banks, but not any more after
\nthe mergers that have taken place,\" Achmad said.<\/p>\n
While the policy is seen by the industry as positive in
\nhelping provide protection for the companies, as well as their
\nclients, some of the companies have found the ruling difficult to
\ncomply with.<\/p>\n
Taspen, with a significant part of its investments in one bank
\n-- Bank Mandiri -- is among those having problems in adjusting.<\/p>\n
Achmad admitted that the company's investments in Mandiri
\nformed the largest part of its investments in the banking sector,
\naccounting for around 30 percent.<\/p>\n
Most of investments from pension funds and insurance firms in
\nthe country currently are made in banks in the form of time
\ndeposits and savings -- as well as bonds, which have now become a
\ntrend as another alternative for investment.<\/p>\n
Achmad said that the funds currently being managed by Taspen
\namounting to Rp 19 trillion (about US$2.32 billion), which were
\ncollected from around 3.7 million government employees.<\/p>\n
Last year, the company booked a net profit of some Rp 200
\nbillion.<\/p>\n
Mandiri president ECW Neloe reported on Monday that under the
\nnew ruling, the bank would lose about Rp 1.8 trillion of funds
\ncollected from pension and insurance firms, but the withdrawals
\nwould not hurt the bank as it had ample liquidity.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/taspen-wants-higher-investment-limit-1447893297",
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