OJK Strengthens National Pension Fund in Line with OECD International Standards
The Financial Services Authority (OJK) has reaffirmed its commitment to continuously strengthen the national pension fund system to increasingly align with international standards whilst simultaneously providing optimal protection for participants and maintaining financial sector stability.
This was conveyed by Ogi Prastomiyono, Head of Executive Supervision for Insurance, Guarantees, and Pension Funds at OJK, during the OECD Financial Markets Week held on 2-5 March 2026 at the Organisation for Economic Co-operation and Development (OECD) headquarters in Paris, France. Prastomiyono led the Indonesian delegation comprising representatives from OJK and the Ministry of Finance of the Republic of Indonesia to participate in various strategic forums discussing developments in global financial sector policy.
Indonesia’s participation in the forum forms part of Indonesia’s accession process to become an OECD member. Indonesia currently holds the status of accession country and is the first country in the Southeast Asian region to obtain this status.
Indonesia’s active involvement in various OECD forums constitutes an important part of supporting the assessment process and policy dialogue with OECD member countries. In support of this accession process, Prastomiyono delivered a self-evaluation presentation 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 delegates from OECD member states.
In his presentation, Prastomiyono explained various aspects of the national pension fund system, including the structure of the pension fund industry in Indonesia, the regulatory and supervisory framework, the implementation of governance and risk management, and the implementation of risk-based supervision that supports industry stability and participant protection.
Indonesia also objectively identified several areas for strengthening compared with OECD standards, including the development of life-cycle-based investment strategies, strengthening pension benefit design that promotes regular payments as pension income, and increasing coverage of pension programme membership.
“OJK continues to promote the strengthening of the national pension fund system to increasingly align with international best practices. This step is important to ensure the sustainability of pension benefits for the community whilst strengthening the resilience of the national financial sector,” said Prastomiyono.
In addition to attending the OECD forum, OJK also participated in the meeting of the International Organisation of Pension Supervisors (IOPS), where OJK currently serves as a member of the IOPS Executive Committee. The series of activities also included a joint meeting between IOPS and OECD Working Party on Insurance and Pensions (WPIP) that discussed various policy issues and pension fund supervisory practices at the global level.
OECD member country delegations welcomed the presentation delivered by Indonesia and appreciated the open approach taken in mapping the strengths and areas for strengthening of the national pension fund system. Input from the OECD will serve as important reference material for refining policy and strengthening the national pension fund system going forward, whilst supporting the next stages in Indonesia’s accession process to become an OECD member.
OJK’s participation in the international forum also reflects OJK’s commitment to continuously strengthen the quality of regulation and supervision of Indonesia’s financial services sector to align with global standards. This effort is expected to increase the resilience of the national financial system, strengthen investor confidence, and support sustainable economic development.