OJK Confirms No Systemic Impact on Pension Fund Industry Despite Rising Layoffs

The Financial Services Authority (OJK) has confirmed that the recent increase in layoffs has not had a systemic impact on the pension fund industry. Ogi Prastomiyono, Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at OJK, stated that total voluntary pension benefits paid reached Rp 19.02 trillion as of May 2026. He explained that the payment of pension benefits is influenced by various factors, including the number of participants reaching retirement age, those terminating membership according to programme rules, and the specific characteristics of each pension fund. OJK continues to monitor industry developments and ensure that every pension fund can meet its obligations to pay benefits to participants in accordance with prevailing regulations.

As of May 2026, total pension fund investments reached Rp 1,619.54 trillion, marking a 7.76 percent year-on-year increase. The investment portfolio remains dominated by Government Securities (SBN), valued at Rp 1,056.79 trillion or approximately 65.25 percent of total investments, followed by deposits at Rp 222.35 trillion, accounting for 13.73 percent. Ogi noted that there has been no significant shift away from SBN instruments, as they provide a balance of security, liquidity, and yield, aligning with the long-term liability characteristics of pension funds. The return on investment (RoI) for pension funds stood at 0.51 percent in May 2026, slightly down from 0.55 percent in April, a movement influenced by financial market dynamics, including securities prices and capital market conditions.