OJK Calls for Boosting Pension and Insurance Sector

Low Contribution to GDP Highlighted

Otoritas Jasa Keuangan (OJK) Chairman Mahendra Siregar emphasized that Indonesia's pension and insurance funds contribute significantly less to GDP compared to other countries. Speaking at a press conference, Mahendra stressed the urgent need to enhance financial product innovation to better serve current societal needs across various segments.

Need for Financial Innovation

Mahendra highlighted that OJK will support innovations in financial services and insurance products. The focus is on improving overall financial health beyond just industry growth. This approach aims to create more comprehensive financial planning solutions for Indonesian citizens.

International Best Practices

Queen Maxima of the Netherlands shared insights from the Dutch 'pension three days' program, where companies dedicate three days annually to discussing pension plans with employees. She emphasized that early pension planning is crucial and suggested that Indonesia could adopt similar practices. Maxima noted that many young Indonesians are part of the 'sandwich generation,' supporting both their children and parents financially.

Financial Planning Challenges

The Queen stressed that having an emergency fund is the first step in long-term financial planning. She believes that even small, consistent savings can make a significant difference. Maxima also suggested that the government and financial institutions should work together to provide long-term savings solutions that are accessible to the broader population.