CHIEF Executive Supervisor of Insurance, Guarantee, and Pension Funds of the Financial Services Authority (OJK) Ogi Prastomiyono said that his party will focus on strengthening the pension fund system for informal workers. According to him, it is appropriate for all groups to participate in the pension fund program.
“Indeed, the issue is about informal workers whose income is not regular. This is homework for the future so that everyone has a pension program,” he said at the event. Executive Forum Media Indonesia ‘Pension Fund Roadmap 2024-2028 Stronger, Stable, Trusted’ in Jakarta, Monday (2/9).
Based on the latest data from the Central Statistics Agency (BPS) through the national labor force survey (Sakernas), the number of workers reached 142 million as of February 2024. Of that number, 60% are informal workers or 85 million people and 40% or around 57 million are formal workers.
“Informal workers such as artists, athletes, or others also have irregular income. However, during their active period their income is large, but after that their income decreases, it is also necessary to create a pension program for them,” explained Ogi.
In addition, to increase participants in the financial institution pension fund program (DPLK), OJK allows investment managers, in addition to banks and insurance companies, to establish new DPLK. This is regulated in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK).
“In the future, we will open up the possibility for investment managers to establish DPLK. We hope that by adding pension program providers, it will be easier for people to participate in pension programs,” he added.
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On the same occasion, the Executive Director of the Indonesian Financial Institution Pension Fund Association (DPLK) Syarifudin Yunus explained that there is potential for a large increase in pension fund assets by involving informal workers.
If 25% of existing informal sector workers join the DPLK program, there will be an additional 20.4 million participants. If that number contributes Rp50 thousand per month, the accumulated pension funds that can be collected will reach Rp1.02 trillion per month.
“This means that in a year we can collect IDR 12 trillion. If I project that in the next 10 years we can work on more than IDR 120 trillion. This is a big potential,” he said.
Yunus admitted that he was optimistic that the presence of investment managers could boost the number of pension fund participants. In addition, he considered that optimizing the role of digitalization could support pension fund management.
“Our big problem in DPLK until today is that it does not have easy access that is evenly distributed. The public cannot access DPLK easily through the application. This is what must be encouraged to be strengthened,” he concluded. (J-3)
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