Surge in Pension Claims Tests Resilience of Pension Fund Industry - Financial Business
Business.com, JAKARTA — Growth in contributions to voluntary pension programmes is beginning to show signs of recovery from early 2025, but pressure from increased benefit payments to participants remains the primary challenge for the pension fund industry.
From December 2023 to January 2026, benefit payment values in voluntary pension programmes have been continuously rising without any annual or year-on-year (YoY) decline. The latest data from the Financial Services Authority (OJK) shows that these benefit payments grew 9.07% YoY to Rp3.88 trillion in January 2026.
Amid this trend, the pension fund industry still heavily relies on investment performance in financial markets as the main pillar of funding sustainability, rather than long-term management or real sector investments.
President Director of Dapen BCA, Budi Sutrisno, stated that investment development is the primary source in maintaining the growth of assets under management, which is ultimately used to meet benefit payment obligations to participants.
“Stability and consistency of investment returns are key factors in maintaining the financial resilience of pension funds,” he told Bisnis, quoted on Saturday (4/4/2026).
For him, investment strategies are not only aimed at achieving optimal returns but also at keeping volatility under control so as not to disrupt the ability to pay benefits.
Dapen BCA, Budi said, ensures the sustainability of benefit payments through careful and measured investment and liquidity management. Fund management remains directed towards maintaining investment return stability so that participants’ benefit values can grow optimally.
“Investment strategies are focused on relatively stable instruments such as government securities, while still considering diversification to maintain a balance between risk and returns,” he emphasised.
In addition, he added, cash flow management is carried out with discipline to ensure the availability of funds to meet benefit payment obligations.
“Monitoring of participant profiles is also continuously conducted to anticipate future payment needs,” he said.
He added that in terms of cash flow profile, Dapen BCA is currently in a situation where benefit payments exceed contribution receipts. This reflects a higher number of participants entering retirement age compared to active participants.
Furthermore, the increase in benefit payments is mainly influenced by the growing number of retired participants. In addition, investment returns over the past few years have also increased the accumulation of participants’ benefit balances, resulting in larger payment values.
“Benefit claims due to participants leaving work also contribute to total benefit payments. In such conditions, the cash flow deficit that occurs can be covered by investment returns [profits] from fund management. However, the sustainability of this situation still depends on future investment performance,” said Budi.
Nevertheless, Budi stressed that this condition has not yet exerted significant pressure on assets under management. This is reflected in the continued asset growth of 3.61% YoY.
“This shows that investment returns are still able to support the increase in benefit payment obligations. Financial balance is maintained through the optimisation of investment returns as well as disciplined and measured cash flow management,” he explained.
For information, throughout 2025, Dapen BCA’s contribution receipts were recorded at Rp515.94 billion, up 6.56% YoY. Meanwhile, pension benefit payments reached Rp770.63 billion, or up 1.71% YoY.
“Contribution growth is still positive, but nominally below the increasing benefit payment needs as more participants enter retirement,” Budi revealed.
Contributions as Foundation and Investments as Support for Pension Funds
In agreement, Public Relations of the Indonesian Pension Fund Association (ADPI), Syarifudin Yunus, opined that investment returns play a very crucial role in supporting pension benefit payments.
This is because an ideal pension programme relies on sufficient and sustainable contributions, optimal investment returns, and good risk and liquidity management.
“So, contributions are the foundation and investments as the support. This must be balanced so that pension benefits, which are the rights of participants, remain payable and the pension fund remains healthy,” he told Bisnis.
Nevertheless, besides optimal investment returns, Syarif emphasised that the pension fund system will actually become stronger and more impactful if the number of participants grows and benefits are paid out.
“Therefore, it is necessary to strengthen education and ease of access to voluntary pension funds. Pension funds are not just about products, but an ecosystem for retirement planning. Trust in pension funds must continue to be enhanced so that pension funds do not lose out to other financial products,” he stressed.
Meanwhile, ADPI Special Staff Bambang Sri Mulyadi reminded that DPPK must maintain commitments from founders to discipline in contributing funds on time and in the correct amount in accordance with pension fund regulations.
“For Defined Benefit Pension Funds [DPLK] to increase literacy among the public to add independent participants,” he said.
Bambang also assessed that the role of investment returns is quite significant for the pension fund industry, although it cannot catch up with the rising funding needs of pension funds, especially with the decline in the benchmark interest rate leading to lower business returns.
Meanwhile, the Financial Institution Pension Fund Association (DPLK) encourages the industry to maintain the liquidity profile of investment portfolios so that benefit payment obligations can be met on time.
According to General Chairman of the DPLK Association, Tondy Suradiredja, benefit cash flow projections also need to be carried out periodically so that future liquidity needs can be anticipated.
“Growth in new participants remains a priority because the flow of contributions is steady