Video: Overseas Investment Permitted, Pension Funds Consider These Factors!

The Financial Services Authority (OJK) is currently drafting a regulation that would permit pension funds to invest abroad through various instruments, such as stocks, mutual funds, and bonds.

The General Chair of the Indonesian Pension Fund Association, Abdul Hadi, has welcomed the OJK’s policy to authorise overseas investment for pension funds. This policy provides an opportunity for pension funds to expand their investment instruments, although not all industry players will immediately pursue international investments.

Pension funds must ensure their readiness for overseas investment by securing internal preparedness, aligning with their specific business needs, and strengthening risk mitigation. At least three key areas of concern for pension funds regarding international investment include long-term obligations, asset management, and the overall management of the fund itself.