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Jakarta Post

Govt to establish insurance holding company for safer pension fund distribution

  • News Desk

    The Jakarta Post

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Jakarta   /   Thu, January 9, 2020   /  07:05 pm
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Rupiah bills(Shutterstock.com/Maciej Matlak)

State-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 ma...