The Jakarta Post
Pension insurance firm PT Taspen saw its total assets grow close to Rp 200 trillion (US$14.95 billion) in 2016, supported by a surge in its investment portfolio.
Company data shows its assets increased 15.3 percent last year to reach Rp 198.62 trillion.
“Rp 2 billion more and we will surpass the Rp 200 trillion [benchmark],” Taspen president director Iqbal Latanro said at a press briefing in Bogor, West Java, over the weekend, as reported by Kompas.com.
Taspen attributes the result to the 17.6 percent growth in the amount of investment assets, especially bonds and stocks.
With such growth, the state-owned company managed to reap Rp 15.21 trillion in investment returns in 2016, 23 percent higher than in 2015.
“We changed our investment strategy last year by reducing our time deposit portfolio due to the very low interest rate. We’re stepping up the bond [portfolio],” he said.
The positive performance in assets, however, was not reflected in its net profit, which dropped by more than half to Rp 247.25 billion.
Higher insurance claim payments—which almost doubled to Rp 8.1 trillion—and the implementation of tax on insurance funds chipped away at its profitability, Iqbal said. (dra/tas)