Indonesian Employment Insurance Targets Investment of US$32.9 T
Indonesian Social Insurance for Employment. Photo: Special.

JAKARTA (TheInsiderStories) – Indonesian Social Security for Employment body targets to manage investment funds up to Rp460 trillion (US$32.9 trillion) this year. The amount up 20 percent compared to 2018, with worth of Rp367 trillion, said senior officer yesterday (03/27).

According to the Director of the Agency Agus Susanto, this target is done by increasing the number of participants at the agency jumped from 30.5 million in 2018 to 34.6 million in this year.

By adding contributions from 4.1 million participants in 2019, he said, there would be an increase in investment which is estimated to increase by around 20 percent.

Last year, the results of the agency’ investment did not reach the target. The company invests Rp27.27 trillion or 85.01 percent of the 2018′ target Rp32.08 trillion. The investment proceeds came from investment funds which reached Rp364.91 trillion.

Last February, finance director at the institution, Amran Nasution, said that the cause of the investment target was not achieved due to the sharp declined in the stock prices. Yield on investment also fell from the target 9.16 percent but the realization 8.15 percent.

The investment return on shares transaction is only 7.73 percent, from the target 14.20 percent. Return on stock investment is only Rp4.85 trillion or 50.19 percent of the initial target of Rp9.67 trillion.

Even so, the CEO of the employment insurance Agus Susanto said, stocks still be an option in 2019. The agency targets the investment results in this year to reach Rp36 trillion or up 33 percent from 2018 realization. While, this year’ yield on investment to reach 8.58 percent, up from last year’ 8.15 percent.

The investment instruments launched by the insurance institution actually refer to Government Regulation Number 99 Year 2013 and also Government Regulation Number 55 Year 2014, where the agency can invest including financial instruments such as deposits, stocks, bonds, mutual funds, and direct participation.

In 2018, the employment insurance recorded a positive result in accounting for growth in membership performance. A total of 30.5 million workers were listed as active participants of the initial target of 29.6 million workers. Total the agency participants reached 50.7 million workers.

If compared to 2017, the active participation of the Wage Recipient segment in 2018 also increased significantly by 3.4 million. On average, the increase in previous years was 1.2 million active workers.

Written by Daniel Deha, Email: daniel@theinsiderstories.com