Taspen Exceeds Its Managed Fund Target

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PT Taspen (Persero), the largest pension fund company in Indonesia, booked managed funds of Rp 72 trillion in the first quarter of 2011, exceeding this year’s target of Rp 71.93 trillion. This was mainly attributed to premium payments from civil servants and state officials (45-55 percent contribution) as well as the company’s investment returns, said Taufik Hidayat, Director of Investment of Taspen.

Taufik said that the company will revise its target, which grew 25 percent to Rp 75 trillion this year from Rp 60 trillion year-on-year (YOY), because it exceeded the 2011 target for managed funds.

Fifty percent of the managed fund was for the life annuity program and the rest was for the pension plan. Civil servants and state officials paid 4.75 percent of their salaries for the pension fund and 3.25 percent for the life annuity program.

The company previously invested 75 percent of the life annuity managed fund in state debentures and bonds, 11-12 percent in stocks and 3 percent in direct investments.

Taspen will change its investment composition for state debentures and bonds to 76.14 percent, stocks and mutual fund to 15 percent and reduce its investment in deposits to 8.58 percent.

Long-Term Investment

Taspen acquired PT Garuda Indonesia Tbk (GIAA) stocks valued at Rp 10 billion as a long-term investment considering Garuda’s performance. In the first quarter, however, the company, suffered a loss on this purchase.

The company's Pension Fund program invests in bonds and state debentures. In 2011, Taspen will invest 77.13 percent of the program's funds in state debentures and reduce its investment in deposits to 21.5 percent.