OJK Processes Licence for Second Investment Manager to Enter Pension Fund Business

The Financial Services Authority (OJK) is currently processing a licence for one investment manager to establish a Financial Institution Pension Fund (DPLK), a move that would make it the second such entity in Indonesia. The establishment of DPLK by investment managers is regulated under OJK Regulation (POJK) Number 35 of 2024 concerning Licensing and Institutional Affairs of Pension Funds, which came into effect three months after its promulgation on 23 December 2024. To date, only one DPLK has been established by an investment manager, namely DPLK Sinarmas Asset Management. “In addition, there is currently one application for the establishment of a DPLK by an Investment Manager that is still in the licensing process at OJK,” said Ogi Prastomiyono, Chief Executive of Insurance, Guarantee Institutions and Pension Fund Supervision at OJK. The limited participation of investment managers in the DPLK industry is attributed to the higher complexity of managing pension funds compared to mutual funds. Prastomiyono explained that operating a DPLK requires not only readiness in terms of capital and governance but also adequate operational systems. “Unlike mutual fund management which is investment-oriented, operating a DPLK also encompasses long-term participant administration, participant services, and pension benefit payments, as well as fulfilling reporting obligations to the regulator,” he stated. OJK welcomes the growing interest in the DPLK sector, expecting it to broaden product innovation, provide more choices for the public, and ultimately boost the penetration of voluntary pension programmes in Indonesia.