The Financial Service Authority (OJK) has demanded the government and the House of Representatives revise Law No. 11/1992 on pension funds to accommodate more non-bank financial institutions in the program, said OJK’s deputy commissioner for non-bank financial institutions, Dumoly F. Pardede, in Jakarta on Tuesday.

Currently, only the Financial Institution Pension Fund (DPLK) and the Employer-Sponsored Pension Fund (DPPK) are allowed to organize pension programs, said Dumoly.

“We want other non-bank financial institutions, such as investment management firms and cooperatives, to also be able to organize the programs,” he told reporters at the Indonesian Pension Conference in Jakarta on Tuesday.

Involvement of more institutions to manage pension funds will help the authority campaign concerning the importance of pension funds for informal workers, including those in rural areas.

As of 2016, Indonesia's financial literacy on the pension fund index reached 10.91 percent, according to the national survey by the OJK.

The law revision will also give alternatives for the already widely-known monthly-paid pension fund schemes, like retirement income cash. The law revision is expected to cover pension funds for Indonesians who work overseas.

“The law is outdated because we have many citizens who work in other countries, and they are not covered by pension funds once they get back to Indonesia,” Dumoly said.

Dumoly said the OJK was preparing the law revision draft for the government. It is expected to be approved by the House of Representatives next year. (ecn/bbn)