Causes of the Increase in Pension Fund Benefit Payments

The Financial Services Authority (OJK) records a 14.26% increase in pension fund benefit payments to participants compared to the previous year. Up to February 2026, the total payments disbursed amounted to Rp 20.79 trillion.

OJK Executive Head for Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, stated that the increase in payments is driven by the growing number of participants reaching normal retirement age.

“Additionally, other factors contribute, such as participants ceasing work due to death or termination of employment (PHK) or layoffs,” Ogi said in a written response on Thursday, 9 April 2026.

Ogi stated that to ensure the sustainability of pension benefit payments, pension fund institutions need to strengthen asset management through the implementation of asset-liability management (ALM) strategies. He also highlighted the need for consistent contribution commitments from employers. “And improving good governance across all operational aspects, including investment management, participation, and funding.”

Previously, in the OJK Board of Commissioners Monthly Meeting on 6 April, Ogi presented the latest developments in the pension fund industry. Total pension fund assets as of February 2026 grew 12.52% compared to the same period last year, reaching Rp 1,700.93 trillion.

Meanwhile, total assets of voluntary pension programmes grew 8.54% to Rp 413.69 trillion. For mandatory pension programmes, comprising old-age security and pension guarantees from BPJS Ketenagakerjaan, as well as civil servants’ (ASN), TNI, and POLRI old-age savings and pension contribution accumulations, total assets reached Rp 1,287.24 trillion, or a growth of 13.86%.

Total pension fund assets in February also increased compared to January 2026, which grew by 11.21%. As of February 2026, total pension fund assets were recorded at Rp 1,686.11 trillion.