Taspen explains 2025 profit decline due to conservative provisioning

State-owned pension fund PT Taspen (Persero) has explained that its decline in net profit for 2025 to Rp1.04 trillion was influenced by the establishment of impairment provisions on its investment portfolio as a conservative measure. President Director Rony Hanityo Aprianto stated that the 2025 net profit fell from Rp1.24 trillion in the previous year, despite an increase in investment returns. “As a form of prudence and conservatism in managing Taspen, there is one item that significantly reduced profit, namely impairment,” Rony said during a hearing with Commission VI of the House of Representatives in Jakarta on Wednesday. Based on the company’s presentation, Taspen’s impairment value in 2025 was recorded at Rp1.82 trillion, a significant increase from Rp288 billion in 2024. Rony explained that the impairment is a reserve established against the investment portfolio as a precautionary measure should there be risks to the assets. He said the provisioning was partly carried out against bonds of state-owned construction firms that are currently facing challenges. He noted that the provisioning can be reversed if the condition of the investment instruments improves, undergoes restructuring, receives a rating upgrade, or matures and is paid in accordance with the terms. “If this impairment, when the bonds or debt securities mature, we can reverse it,” he said. According to Rony, without the impairment provisioning, Taspen’s profit could have reached around Rp2 trillion. However, the company opted to make the provisions as a conservative step in preparing its financial statements.