Pension Fund Investment in Government Bonds Grows Strongly, Reaching IDR 1,600 Trillion
Jakarta — The Financial Services Authority (OJK) has revealed that Government Bonds (SBN) remain the preferred investment destination for pension funds. Based on data as of May 2026, total pension fund investments reached IDR 1,619.54 trillion, an increase of 7.76% year-on-year. The composition of SBN amounted to IDR 1,056.79 trillion, or approximately 65.25% of total investments. This was followed by placements in deposits, which totalled IDR 222.35 trillion, or around 13.73% of total investments.
“With this composition, as of May 2026, the OJK has not observed a significant shift in pension fund investments away from SBN instruments,” said Ogi Prastomiyono, Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at OJK, in a statement on Monday (27/7/2026). He noted that SBN remains the main instrument because it provides a balance between security, liquidity, and yield, and aligns with the long-term liability characteristics of pension funds.
Meanwhile, as of May 2026, the return on investment (RoI) for pension funds was recorded at 0.51%, a slight decrease from the 0.55% recorded in April 2026. Ogi stated that this movement in RoI was influenced by the dynamics of financial market conditions, including movements in securities prices and capital market conditions during the period. “Given that a large portion of pension fund portfolios is placed in financial market instruments, investment performance will be influenced by market developments,” he said.
The RoI for pension funds throughout the year will depend heavily on financial market developments until the end of the year, including bond market conditions, stock market conditions, interest rates, and the investment management strategies of each pension fund. “The OJK continues to encourage pension funds to apply prudential principles, sound asset and liability management, and to diversify investments according to their risk profile and applicable regulations,” Ogi concluded.