East Java Pension Funds Reach Rp4.55 Trillion in Assets

Overview of Pension Fund Performance

The total assets of pension funds operating in East Java have reached Rp4.55 trillion as of September 2025, distributed across 10 pension fund entities. The majority of these assets are invested in government securities, reflecting a conservative investment approach. Key financial indicators such as net assets, investments, ROI, ROA, and funding ratios have largely met the targets set in the 2025 Business Plan.

Challenges Facing Pension Funds

Despite positive financial indicators, the pension fund industry in East Java faces several challenges. Asep Hikayat, Head of the Directorate of Financial Institution Supervision at OJK East Java, noted that pension fund growth has slowed down and remains exposed to investment risks and market volatility. Other challenges include limited human resources, suboptimal compliance and risk management functions, and the need for business process digitalization.

OJK's Initiatives to Strengthen the Industry

The OJK is actively working to address these challenges through its Roadmap for Pension Fund Development and Strengthening 2024-2028. This roadmap focuses on four main pillars: enhancing the resilience and competitiveness of pension funds, developing industry ecosystem elements, accelerating digital transformation, and strengthening regulations and supervision. Nasirwan, representing the Head of OJK East Java, emphasized the importance of pension funds not only providing retirement benefits but also acting as institutional investors supporting national economic development through long-term funding.

Economic Context and Future Prospects

M. Barik Bathaluddin from Bank Indonesia's East Java Representative Office provided context on the regional economic performance, noting that East Java's economy grew by 5.22% in Q3 2025, driven by increased investment and government consumption. While the financial services sector experienced some slowdown, pension funds remain well-positioned to grow through adaptive asset management strategies. Effective investment management will be crucial for pension funds to maintain asset value, meet participant obligations, and remain stable amid market fluctuations.

Conclusion

The OJK East Java office is emphasizing the importance of business planning that goes beyond regulatory compliance, serving as a guide for responding to economic dynamics. Pension funds are encouraged to enhance program management quality, expand participant services, and contribute more significantly to both regional and national economic stability and growth.