DPLK Becomes New Frontier for Investment Managers, One Already Registered
The Financial Services Authority (OJK) is supporting investment managers (MI) who establish Financial Institution Pension Funds (DPLK). Since the enactment of POJK Number 35 of 2024, only one DPLK has been established by an investment manager, namely DPLK Sinarmas Asset Management.
Ogi Prastomiyono, Chief Executive of Insurance, Guarantee and Pension Fund Supervision at OJK, stated that there is currently one application for the establishment of a DPLK by an investment manager still in the licensing process at the OJK. According to him, establishing a DPLK by an investment manager requires comprehensive readiness, not only in terms of capital and governance but also operational readiness. Unlike mutual fund management which is investment-oriented, operating a DPLK also includes long-term membership administration, participant services, pension benefit payments, and fulfilling reporting obligations to the regulator.
“Readiness of information systems, human resources, and operational infrastructure are important factors before an investment manager enters the DPLK business,” he said in a written statement on Monday (27/7/2026). The OJK welcomes the increase in business players in the DPLK industry as it is expected to enhance product innovation, expand choices for the public, and encourage increased penetration of voluntary pension programmes in Indonesia, while still prioritising the principle of prudence and participant protection.
Based on data as of May 2026, the return on investment (RoI) of pension funds was recorded at 0.51%, slightly down compared to the April 2026 position of 0.55%. Ogi explained that the RoI is influenced by the dynamics of financial market conditions, including the movement of securities prices and capital market conditions during the period. “Considering that most of the pension fund investment portfolios are placed in financial market instruments, investment performance will be influenced by market developments,” he noted.
Meanwhile, the RoI of pension funds throughout the year will depend heavily on financial market developments until the end of the year, including conditions in the bond market, stock market, interest rates, and the investment management strategies of each pension fund. On the other hand, OJK continues to encourage digital transformation in the pension fund industry as part of efforts to improve service quality to participants, expand membership access, and increase operational efficiency.
Currently, the implementation of digitalisation in each pension fund varies. Most pension funds have utilised digital technology in services to participants, such as providing participant portals, membership information services, and delivering benefit information electronically. However, the level of digitalisation utilisation is still adjusted to the scale of the business, operational complexity, and readiness of each pension fund. The main challenges of implementing digitalisation include the need for investment in information technology infrastructure, strengthening cyber security, increasing human resource capacity, and integrating existing systems.
“OJK will continue to encourage digital transformation to be carried out in stages while still paying attention to the principles of governance, risk management, and participant data protection,” he added. Based on data as of May 2026, total pension fund investments reached Rp1,619.54 trillion, an increase of 7.76% year-on-year. The investment composition is still dominated by Government Securities (SBN) with a value of Rp1,056.79 trillion or around 65.25% of total investments. This is followed by placements in deposits amounting to Rp222.35 trillion or around 13.73% of total investments.
With this composition, as of May 2026, OJK has not seen a significant shift in pension fund investments away from SBN instruments. SBN remains the main instrument because it provides a balance between security, liquidity, and yield, and matches the long-term liability characteristics of pension funds. Meanwhile, based on data as of May 2026, total voluntary pension fund benefits paid reached Rp19.02 trillion. OJK continues to monitor developments in employment conditions, including their potential impact on the pension fund industry.
In principle, pension benefit payments are influenced by various factors, including the number of participants reaching retirement age, participants ending their membership according to programme provisions, and the characteristics of each pension fund. Ogi added that OJK has not yet seen a systemic impact on the pension fund industry as a result of rising layoffs. “OJK will continue to monitor industry developments and ensure that every pension fund remains able to meet its obligations to pay benefits to participants in accordance with applicable regulations,” he concluded.