Page 78 - SUSTAINABILITY ISSUES & COVID-19

350
300 260.82 268.03
234.47 289.74
250
206.51
in trillion Rp 2000 192.9
150
100
500
0
2014 2015 2016 2017 2018 2019
year
Figure 1. Pension Fund Net Asset Growth in 2014-2019
Source: Financial Services Authority (processed)
Each pension fund aims to provide sustainable income for participants and entitled parties. Contributions from
employers or participants are a source of development for pension fund management, specifically through investment.
Because of the large number of funds under management, the pension fund management manages its investment
properly, safely, and develops to produce optimal returns and succeeding the investment targets.

The Fiscal Policy Agency (BKF) of the Ministry of Finance highlighted that the management of pension funds in
Indonesia is still not optimal. Although the assets of the national pension program have increased, pension funds have
not played a major role in the development of the financial sector. According to BKF, pension fund assets in Indonesia
are mostly invested in short-term instruments. This is not ensuing the characteristics of pension plans that have long-
term liabilities (asset-liability mismatch). Furthermore, the pension fund assets that are currently managed cannot be
developed optimally (Wildan, 2020).

This research focuses on the responsibility of employer pension funds with a Defined Benefit Pension Program (DPPK-
PPMP) scheme in managing the investment placement of AKM pension funds. AKM Pension Fund is a pension fund
that manages the funds of retired employees of one of the BUMNs in Indonesia. The investment portfolio carried out
by Dapen AKM is Government Securities (SBN), savings, Deposit On Call (DOC), time deposits, stocks, corporate bonds,
asset-backed securities, direct placements, and land and buildings. The following graph shows the composition of the
types of investment instruments owned by Dapen AKM from 2014 to 2019.

60%
50%
40%
30%
20%
10%
0%
2013 2014 2015 2016 2017 2018 2019
Government Securities Savings DOC
Time deposits Stocks Corporate bonds
Sukuk Mutual fund Asset backed securities
Options Direct investments Land
Land & building

Figure 2. Composition of AKM Pension Fund Investment in 2014-2019
Source: AKM Pension Fund (processed)

International Conference on Sustainability 77
(5 Sustainability Practitioner Conference)
Th