(MENAFNEditorial)
PALANGKARAYA February 11 2015 – A state-owned social insurance company PT Taspen hopes the government will give permission for the planned investment expansion for pension funds program.
Taspen President Director Iqbal Latanro said it had sent a letter to the Minister of Finance to submit the request.
"We asked the government to allow the pension plan to invest funds to corporate bonds stocks and to allow placing deposits to regional development banks or private banks with higher interest rates" said Iqbal Tuesday (2/10/2015).
Iqbal predicted later there would be a decrease in deposits rate and bond coupons in line with the government's desire to reduce lending rate.
"Mr. JK often says that the government wants a low lending rate. So I predict that there is a tendency that deposit rates will decline" he said.
He said if the deposits rate and bond coupons decrease it will have a negative impact on pension plans. "If the deposit rate and bond coupon decrease and we cannot expand investment instruments pension plans can be harmed" he added.
Throughout 2014 Taspen’s total investment funds reached IDR124.28 trillion. Most of the total investment funds were placed on government and corporate bonds i.e. by 67.24%. "The corporate bonds are for annuity program while the pension funds are only placed in government bonds" said Iqbal.
In addition some 27.2% of investment funds were placed in deposits while the remaining 4.5% were placed in stocks and mutual funds.
In 2014 the entire investment pocketed IDR11.22 trillion. Iqbal said the investment for annuity yielded 11.21% while the yield for the pension plan was 9.34%.
The amount of yield obtained slightly increased from the previous year yields. In 2013 the investment for annuity program yielded 9.45% while pension plan was only 7.7%. read more…
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