History of Pension Funds in Indonesia

Investment and Capital Market

“The History of Pension Funds in Indonesia 2010-2014”

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Iman Santoso Syarif H.                1406533705

Adhityas Ghaniyya Tejo                 1406533806

Alvania Safira                                1406533913

Veda Sunarsa                                1406533983

Faculty Of Economics and Business

Universitas Indonesia, Depok

2016

STATEMENT OF AUTHORSHIP

        We the undersigned hereby declare that the papers/assignments attached is purely our own work. No work of others that we use without citing sources. This material has never been presented as a material for papers/assignments in other subjects unless we state it. We understand that the task that we collect may be reproduced or communicated for the purpose of detecting the presence of plagiarism.

Subject:                : Investment and Capital Market

Title                : The History of Pension Funds in Indonesia 2010-2014

Date                : November 3, 2016

Lecturer                : Prof. Sidharta Utama, Ph.D., CFA. 

(Made by the whole group)

CONTENTS

Statement of Authorshipi

Contentsii

Chapter 1 Introduction1

1.1 Background1

1.2 Problem Formulation 1

1.3 Aims of Paper2

1.4 Methodology 2

Chapter 2 Theoretical Study3

Chapter 3 Analysis4

3.1 Development of Pension Fund Amount in 2010-2014 ………………………………..… 4

1. Development of Pension Fund Program in 2010-2014 ……………………………....… 5
2. Development of Pension Fund Participants in 2010 – 2014 …………………….…….. 6
3. Development of Pension Fund Net Asset Growth in 2010-2014 …………………….... 7
4. Development of Pension Fund Investment Growth in 2010-2014 …………………..… 8
5. Development of Pension Fund Investment Portofolio in 2010 – 2014 ……………..…. 9

Chapter 4 Conclusion12

References 13

CHAPTER 1

INTRODUCTORY

1. Background

The pension funds were held in an effort to guarantee the livelihoods of the employees after retirement. The guarantee is given in the form of benefits or pension benefits when employees retire or have an accident. This warranty will make your employees feel safe about their future. This guarantee will also give employees motivations. So, the company and employees can take their advantages.

Besides offering employee benefits in the future, pension funds can be invested in investment products such as stocks and bonds under certain conditions regarding the laws of the Pension Fund. Pension funds that are invested in the capital market will increase the number of aggregate investment indirectly. It increases the productivity of company that has been received the capital.

Development of pension funds in Indonesia in 2010-2014 is significant. Proven with increases in pension funds in Dana Pensiun Pemberi Kerja and in Dana Pensiun Lembaga Keuangan which has been approved by Kementrian Keuangan from year to year. There was also an increase of participants in the pension funds, the assets of pension funds. This indicates an increase in corporate concern about the welfare of employees after retirement. Although not all companies have pension plans, employees can enroll in the pension plan in Dana Pensiun Lembaga Keuangan outside the company.

1. Problems Formulation

1. Analysing the development of the number of Pension Funds 2010-2014
2. Analysing the development of the number of Pension Fund Program 2010-2014
3. Analysing the number of participants of the Pension Fund 2010-2014
4. Analysing the growth of net assets in Pension Fund 2010-2014
5. Analysing the growth of the Pension Fund 2010-2014
6. Analysing Pension Fund's investment portfolio 2010-2014
7. Analysing performance of Investment in the Pension Fund in 2008-2014

1. Aims of Paper

1. To know the development of the number of pension funds in Indonesia
2. To determine the development of the number of Pension Fund Program
3. To determine the development of the number of participants of the Pension Fund in Indonesia
4. To determine the growth of pension funds’ net asset in Indonesia
5. To know the growth of pension funds’ investment in Indonesia
6. To determine the pension fund's investment portfolio in Indonesia
7. To know the development of performance of Investment in the Pension Fund in Indonesia

1. Methodolgy

We made this paper by reading from articles in the internet and review of the literature.

CHAPTER 2

THEORETICAL STUDY

According to UU No. 11 Tahun 1992 about Pension Fund, Pension fund is a legal entity that manages and runs a programs pledged pension benefits. Regarding this definition, manages the funds from employees for pension plan in order to provide welfare benefits for employees of a company after pension.

The law stated that there are two types of pension funds, they are Dana Pensiun Pemberi Kerja and Dana Pensiun Lembaga Keuangan. Dana Pensiun Pemberi Kerja is pension funds established by persons or entities hiring employees as the founder of the company to do Program Pensiun Manfaat Pasti or Program Pensiun Iuran Pasti as the benefit of some or all of its employees, and creates liability of the employer. Dana Pensiun Lembaga Keuangan is a pension fund established and regulated by bank or insurance company to Program Pensiun Iuran Pasti for individuals.