Indonesia's Pension System Pursues International Standards, OJK Chief Reveals Strategy
The Financial Services Authority (OJK) has reaffirmed its commitment to continually strengthen Indonesia’s national pension fund system to align with international standards whilst providing optimal protection for participants and maintaining the stability of the financial sector.
This was stated by Ogi Prastomiyono, Head of the OJK’s Executive Office for Insurance, Guarantees, and Pension Funds, during the OECD Financial Markets Week held on 2–5 March 2026 at the Organisation for Economic Co-operation and Development headquarters in Paris, France.
Prastomiyono led an Indonesian delegation comprising representatives from the OJK and the Ministry of Finance to participate in various strategic forums discussing developments in global financial sector policy.
Indonesia’s participation in this forum forms part of the country’s accession process to become an OECD member, with Indonesia currently holding accession country status and being the first nation in Southeast Asia to achieve this designation.
Indonesia’s active engagement in various OECD forums represents an important component in supporting the assessment process and policy dialogue with OECD member countries.
To support the accession process, Prastomiyono presented a self-evaluation on Wednesday 4 March regarding two OECD legal instruments relating to the pension fund sector: the Core Principles of Private Pension Regulation and Good Design of Defined Contribution Pension Plans before delegations from OECD member nations.
In his presentation, Prastomiyono outlined various aspects of Indonesia’s national pension system, including the structure of Indonesia’s pension fund industry, the regulatory and supervisory framework, governance and risk management implementation, and the application of risk-based supervision supporting industry stability and participant protection.
Indonesia also objectively identified several areas for strengthening compared with OECD standards, including developing life-cycle based investment strategies, strengthening pension benefit design to encourage periodic payments as pension income, and expanding participation coverage in pension programmes.
“The OJK continues to drive strengthening of the national pension system to increasingly align with international best practices. This step is important to ensure the sustainability of pension benefits for the public whilst strengthening the resilience of the national financial sector,” said Prastomiyono.
Beyond attending the OECD forum, the OJK also participated in the International Organisation of Pension Supervisors (IOPS) meeting, where the OJK currently serves as a member of the IOPS Executive Committee. The series of activities also hosted a joint meeting between IOPS and the OECD Working Party on Insurance and Pensions (WPIP), which discussed various policy issues and pension fund supervisory practices at the global level.
Delegations from OECD member countries welcomed Indonesia’s presentation and appreciated the transparent approach taken in mapping the strengths and areas for strengthening of the national pension system.
OECD feedback will serve as an important reference in refining policies and strengthening the national pension system going forwards, whilst supporting subsequent stages in Indonesia’s accession process to become an OECD member.
The OJK’s participation in these international forums also reflects the OJK’s commitment to continually improve the quality of regulation and supervision of Indonesia’s financial services sector in line with global standards. This effort is expected to enhance the resilience of the national financial system, strengthen investor confidence, and support sustainable economic development.