Video: Securing Liquidity Needs, This is How Pension Funds Manage Investments

The Vice Chairman III of the Indonesian Pension Fund Association (ADPI), Budi Sutrisno, stated that investment management in the era of high interest rates is carried out carefully by adhering to the principle of prudence. Pension funds ensure that investment instruments are directed towards those offering attractive returns with maintained volatility, including Government Securities (SBN), corporate bonds, and Bank Indonesia Rupiah Securities (SRBI). At a time when SBN prices are relatively cheap yet offer high yields, this allows for extending the duration of the SBN portfolio. Therefore, pension funds are optimistic that investment performance in 2026 will remain well-supported by solid fundamentals and continuously improving investment income. Nonetheless, pension funds face the challenge of market volatility which will impact their investments, making it crucial for them to synchronise liquidity needs for pension benefit payments with investment duration.