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)