Listed firms's pension funds

JAKARTA (JP): Only 66 of the 260 companies listed on the Jakarta Stock Exchange have set up pension funds, the Ministry of Finance's director of pension funds, Sophar Lumban Toruan, said Monday.

Toruan said most listed companies were reluctant to set up pension funds because they were not keen to pay past service liabilities for their employees.

He said companies had to pay past service liabilities if the pension funds were designed to provide defined benefits for their members but not "if they set up pension funds promising to provide only defined contributions for their members".

He said there was no obligation for companies to set up pension funds but urged listed companies to do so to improve their image and to look after their employees welfare and reduce staff turnover. (13)