Taspen's invested Rp 8.3t last year

Taspen's invested Rp 8.3t last year

JAKARTA (JP) The total investment of PT Taspen, the state- owned company handling insurance and pensions for civil servants, reached Rp 8.3 trillion (US$3.86 billion) as of last year.

Taspen's president, Purwanto Abdulcadir, said the investment funds were accumulated from pension contributions and the insurance premiums of civil servants throughout the country.

He said that 50 percent of the pension funds were placed in time deposits, 40 percent in bonds, seven percent in stocks and the remaining three percent in direct investments.

Seventy-five percent of the premiums were invested in Bank Indonesia Certificates, 12 percent in stocks, 10 percent in direct investments and the remaining three percent in time deposits and bonds.

"Taspen still adopts a prudent investment policy despite the government's recent decision to ease restrictions in pension funds' investments in securities and properties," he told newsmen during a gathering to break the fast on Thursday night.

Early this month, Minister of Finance Mar'ie Muhammad annulled the investment restrictions imposed on pension funds in relation to listed shares, commercial papers and property.

The investment ceiling for shares listed on Indonesian stock exchanges was previously set at 10 percent of pension funds' total assets, one percent for short-term commercial papers and two percent for property.

"The increased freedom for investment in securities reflects the government's commitment to developing the domestic capital market," he said.

He said that despite the new leeway, Taspen plans to remain conservative in making investments in the capital market in order to avoid high investment risks.

Abdulcadir said that Taspen, which at present manages its investment activities by itself, will need the help of a professional investment fund manager to tap the growing business potential in capital market activities.

"At present, our ceiling for investment in listed shares is still limited to 10 percent to avoid risks," he said. (hen)