OJK Predicts Impact of Global Market Dynamics on Pension Fund Investments, ADPI's Response
The Indonesian Pension Fund Association (ADPI) assesses that pension fund (dapen) investment performance in 2026 could be affected by global financial market dynamics.
ADPI spokesperson Syarifudin Yunus opines that aspects potentially impacted include a decline in return on investment (ROI) or market volatility.
Nevertheless, he adds, the principle of pension fund investment prioritises long-term return stability, not merely short-term profits.
“Therefore, portfolio diversification and strengthened risk management are necessary. Short-term global fluctuations are acceptable, but good governance and appropriate strategies must be in place to provide certainty and peace of mind for participants,” he told Bisnis, quoted on Monday (23/3/2026).
Syarif emphasises that the key to investment in the dapen industry lies not only in interest rate direction changes but also in managing bond duration, maintaining diversification, and adjusting asset allocation disciplinedly.
“Because the goal of pension funds is not merely to chase high returns, but to ensure the continuity of benefits for participants in the long term,” he asserts.
Therefore, he encourages dapen to implement investment strategies aimed at consistent returns sufficient to meet obligations.
He mentions that balancing asset-liability matching (ALM) and focusing on long-term yield are necessary. Meanwhile, instruments he deems still attractive for the industry include Government Securities (SBN) or corporate bonds.
On the other hand, he also views that a decline in investment yields could potentially affect participants’ pension benefits. However, the magnitude of the impact depends on the type of pension programme, whether defined contribution or defined benefit.
“But the most important thing is whether one has a pension fund or not? Because pension benefits depend on how long one is a participant, not just investment,” says Syarif.
Meanwhile, ADPI Advisor Staff Bambang Sri Mulyadi assesses that a decline in investment yields will affect participants in the Defined Contribution Pension Programme (PPIP).
Furthermore, Bambang emphasises that the pension fund industry needs to adhere to prudent principles in managing its investments.
“So caution is needed, for example, investing in stocks only in those with good fundamentals,” he states.
Further, he also assesses that the impact of global market dynamics on pension fund investment performance is not very significant. This is because 70% of dapen investment portfolios are invested in fixed-income instruments, both SBN and corporate bonds.
“Those maturing in 2026 are not many; if there is a decline, it’s only around 0.50% because many portfolios are of a rollover nature, so the yield is the same as in previous years,” he concludes.
Previously, the Financial Services Authority (OJK) revealed several challenges facing the pension fund industry in 2026. One of them is global financial market dynamics.
The Executive Head of Insurance, Guarantee, and Pension Fund Supervision (PPDP) OJK, Ogi Prastomiyono, assesses that these dynamics have the potential to affect investment performance.
“Including the possibility of declining yields in line with changes in interest rate direction,” he said in the OJK RDK answer sheet for February 2026, quoted on Thursday (19/3/2026).
In addition, Ogi mentions other challenges related to strengthening governance and risk management, limited funding capacity from employers in some pension programmes, and the still limited literacy and public participation in pension fund programmes.