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Govt to establish insurance holding company for safer pension fund distribution
Erick said he expected the move to help prevent irresponsible individuals from abusing their power.
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Rupiah bills (Shutterstock.com/Maciej Matlak)
S
tate-Owned Enterprises (SOE) Minister Erick Thohir has announced a plan to merge all pension funds from every state-owned firm in the country under a single state-owned insurance holding company.
The move, he said, was necessary to prevent liquidity issues – such as the one that befell state insurer Asuransi Jiwasraya – from hindering the distribution of state pension funds.
Erick said he also expected the move to help prevent irresponsible individuals from abusing their power to embezzle the funds.
“We wouldn’t want any hardworking employee at a state-owned company who has dedicated decades of their life to their job to not receive their hard-earned pension funds,” he said on Sunday as quoted by tempo.co.
In addition to consolidating state pension funds, the ministry will also appoint someone with a reputable track record to oversee the management of the funds.
“I’m sure the board of directors at state-owned companies share my vision,” Erick said.
Regarding Jiwasraya’s liquidity fiasco, Erick said the government had been actively working to rescue the state insurer to do its customers justice.
