Indonesia's Pension Fund Industry Maintains Positive Outlook for 2026

Strong Growth Prospects

The Indonesian Pension Fund Association (ADPI) remains optimistic about the pension fund industry's prospects for 2026, citing favorable economic conditions and significant potential for growth among workers. Syarifudin Yunus, ADPI's spokesperson, highlighted that both assets under management (AUM) and participant numbers are expected to show positive trends.

Key Challenges and Recommendations

1. Enhancing Public Trust: Building confidence in pension fund programs remains crucial, particularly for informal workers and UMKM participants.
2. Improving Financial Literacy: The industry needs to conduct massive education efforts to increase understanding of pension fund benefits.
3. Expanding Access: Developing more flexible products like DPLK for informal workers is essential.
4. Digital Transformation: Implementing digital onboarding and management systems can enhance accessibility.
5. Strategic Partnerships: Collaborating with employers can help allocate severance pay and retirement funds effectively.

Industry Initiatives

ADPI suggests that pension funds should focus on quality governance and risk management while maintaining optimal investment performance. The association also emphasizes the importance of transparent communication with participants and continuous education programs. By addressing these areas, the industry can create a more robust and inclusive pension fund ecosystem in Indonesia.