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tate-owned insurance company PT Jamsostek is projecting it will invest Rp 149 trillion (US$15 billion) this year, which would be up 12 percent from Rp 132.15 trillion last year.

Jamsostek president director Elvyn G. Masssya said here on Wednesday that the increase would be funded by the surge in worker contributions and investment returns from last year.

“We are targeting Rp 149 trillion in investment funds this year,” Elvyn said on the sidelines of a seminar on financial institutions on Wednesday.

About 41 percent of last year’s investment funds, or Rp 42.87 trillion, were invested in time deposits; 32 percent, or Rp 54.24 trillion, in bonds; 20 percent, or Rp 27.18 trillion, in stocks; 7 percent, or Rp 9.45 trillion, in mutual funds; while the remainder was invested in the real sector.

“The main driver of our growth is investment and insurance premiums. The biggest gain from investments come from bonds and stocks,” Elvyn said.

The composition of funds managed by Jamsostek in 2012 was almost the same as in 2011, according to figures on the company’s website. Elvyn declined to comment whether the company would maintain its portfolio’s composition this year.

Besides providing insurance to workers, Jamsostek manages worker old-age savings packages.

Jamsostek earned Rp 13.23 trillion from investments last year, up almost 10 percent compared to Rp 12.02 trillion in 2011.

Of the total returns earned in 2012, about 41 percent, or Rp 5.48 trillion, came from Jamsostek investment in bonds; 31 percent from the stock market; 20 percent, or Rp 2.71 trillion, from time deposits; 6 percent, or Rp 876 billion, from mutual funds and the remainder from the real sector.

Elvyn said that the company expected to collect Rp 14 trillion in total investment returns this year.

Jamsostek is expecting a higher return from its investments in the stock market on signs of recovery in the global economy.

Analysts have estimated that the Jakarta Composite Index (JCI) will break new ground and touch the psychological benchmark of 5,000 this year, which would be up about 15 percent from 4,316.69 at the end of last year.

“The global equity risk premium has declined. We predict that the JCI will grow in line with its EPS [earnings per share] of around 15 percent,” Panin Asset Management president director Winston Sual said on Wednesday.

The index closed at 4,452.98 on Wednesday, marking a 3.16 percent year-to-date growth.

According to Elvyn, Jamsostek placed its deposits in banks that had assets of more than Rp 10 trillion, and bought the stocks of companies included on the 45-most liquid stocks (LQ45) on the Indonesian Stock Exchange (IDX).

Jamsostek currently has 28 million clients, or which only 11.5 million of them are considered active, paying their monthly contributions and premiums. The company has that 13 million workers would take part in insurance coverage program this year.

To attract more active insurance members, Jamsostek will step up its campaign to cover more workers in the informal sector.

“We will continue to cooperate with state-owned banks and regional banks in expanding its services,” he said, adding that the company has been cooperating with PT Bank Negara Indonesia, PT Bank Mandiri, PT Bank Rakyat Indonesia and PT Bank Bukopin. Recently, Jamsostek opened counters in several banks to provide services clients.

Jamsostek has been mandated by the government to become a single provider for the country’s occupational social security programs starting on July 1, 2015.

Elvyn said earlier that Jamsostek had submitted to the government draft regulations on becoming a single provider for its universal occupational social security programs.

He said the company would use the Philippines’ social security system as its main reference in making draft rules on pension schemes, benefits and the social security system, since the Filipino system was similar to that mandated for Indonesia by Law No. 40/2004.

Jamsostek also worked with the South Korea’s Workers Compensation and Welfare Service (COMWEL) to prepare a draft regulation on occupational accidents and benefits.