Pension Funds Increase Stock Investments to Rp24.66 Trillion by October 2025

Significant Growth in Equity Investments

The Financial Services Authority (OJK) has reported that pension fund investments in the stock market reached Rp24.66 trillion by October 2025. This figure represents 6.37% of total pension fund investments, indicating a growing confidence in Indonesia's equity market. OJK Executive in Charge of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, stated that the improving performance of the Indonesia Composite Index (IHSG) has positively impacted investor confidence in stock investments, including pension funds.

Improved Investment Performance

The Return on Investment (ROI) for pension funds showed a 1.45% year-on-year increase, reaching 7.03% as of October 2025. This improvement highlights the resilience of pension fund investments despite market fluctuations. Ogi emphasized the importance of maintaining prudent investment practices that align with risk profiles and liabilities.

Future Directions for Pension Fund Industry

For the future, OJK is encouraging pension funds to optimize their asset allocation strategies and enhance participant education. This is aimed at ensuring that investment choices are aligned with risk profiles and liabilities, thereby maintaining optimal and sustainable investment performance. The total assets of voluntary pension programs grew by 5.52% year-on-year to Rp400.44 trillion by October 2025, with contributions reaching Rp31.46 trillion (up 6.64% YoY) and benefits paid amounting to Rp35.24 trillion (up 7.96% YoY). The number of participants in these programs stood at 5.37 million.

Market Implications

The growth in pension fund investments in stocks reflects increasing confidence in Indonesia's capital markets. As OJK continues to monitor and regulate the industry, the focus remains on ensuring that pension funds are managed prudently while maximizing returns for beneficiaries.