Indonesia sets strict rules for pension funds to invest abroad

Speaking at the Indonesia Pension Fund Summit, OJK chief Ogi Prastomiyono clarified that pension funds may invest overseas only as a last resort, serving as a safeguard if local options underperform. The regulator will issue baseline guidelines that specify eligible asset classes, including foreign stocks, mutual funds and bonds. Individual fund managers will retain the freedom to decide exact allocations, but all moves will be subject to stringent supervision.

State-run pension entities like Asabri and Taspen will continue to follow Finance Ministry rules, while employer-sponsored and financial-institution funds remain governed by existing corporate statutes. To ensure real-time oversight, OJK will use its Prime digital monitoring platform to track investments, counterparties and pricing, including related-party transactions.