Indonesia's Pension Fund Industry Shows Strong Growth

Voluntary Pension Contributions Surge

Indonesia's voluntary pension fund contributions are projected to grow between 8.5% to 9.5% by the end of 2025, according to the Indonesian Financial Pension Fund Association. As of September 2025, total contributions reached Rp28.40 trillion, representing an 8.56% year-on-year (YoY) increase. This growth trajectory is attributed to improving macroeconomic stability, enabling both corporations and individuals to allocate more funds to pension schemes.

Key Drivers of Growth

1. Corporate Participation: The growth is primarily driven by corporate contributions, with companies increasing their allocations to pension funds.
2. Macroeconomic Stability: Stable economic conditions have boosted confidence in pension fund investments.
3. Increasing Pension Literacy: There's a positive trend in pension literacy among Indonesian citizens, though informal worker participation remains limited.

Industry Performance

The Financial Services Authority (OJK) reported that the total assets under management in voluntary pension programs reached Rp397.83 trillion by September 2025, marking a 4.47% YoY growth. The number of participants stood at 5.36 million individuals, with benefit payouts amounting to Rp31.54 trillion, a 7.08% YoY increase. Month-on-month, contributions surged by 12.43% to Rp28.40 trillion in September 2025, recovering from a 3.23% YoY contraction in September 2024.

Outlook

The pension fund industry is expected to maintain its growth momentum, driven by both corporate and individual participation. However, the sector still faces challenges in increasing participation from informal workers. The industry's ability to deliver competitive investment returns will be crucial in sustaining this growth trajectory.