Bisnis.com, JAKARTA — Indonesia’s pension fund industry saw a notable shift in its investment allocation as of July 2025. Data reveals a significant rebalancing, with a substantial move away from equities towards more conservative assets like time deposits and government securities.
Specifically, the stock portfolio experienced a decline of 9.82% year-on-year (YoY), settling at Rp23.2 trillion. Conversely, according to statistics from the Financial Services Authority (OJK), the allocation to time deposits surged by 20.24% YoY, reaching Rp101.64 trillion. Investments in Government Securities (SBN) also saw an increase, climbing 2.76% to Rp138 trillion, underscoring a broader preference for lower-risk instruments among pension funds.
The Indonesian Pension Fund Association (ADPI) attributes this pronounced shift in investment allocation from stocks to deposits and SBNs to a confluence of macroeconomic, market, and regulatory factors. This strategic realignment aims to bolster portfolio stability amidst evolving economic landscapes.
“Furthermore, the attractive yields on government bonds, such as SBNs, have made the fixed-income market more competitive, simultaneously helping to manage expectations for investment returns,” explained Syarifudin Yunus, Public Relations for ADPI, to Bisnis on Wednesday, October 22, 2025.
Consequently, Yunus emphasized the imperative for pension funds to fortify their holdings in safer assets like SBNs and deposits. This move is deemed crucial for judiciously reducing stock allocations during periods of heightened market volatility, thereby safeguarding asset values.
Despite this current inclination, Syarifudin highlighted that this strategic approach remains adaptive to prevailing economic conditions. For the present, he views it as a temporary measure, although it could evolve into a medium-term directive if macroeconomic risks persist at elevated levels. “As long as SBN yields remain high and market risks have not diminished, these will continue to be preferred choices. However, pension fund managers must still rebalance their portfolios to ensure sustained long-term asset growth,” he affirmed.
Addressing potential concerns, Yunus further elaborated that a decrease in SBN yields would not substantially impact the valuation of pension fund investment portfolios. “The impact is not significant because SBNs can still enhance the short-term valuation of pension fund portfolios. This is primarily to anticipate and secure pension benefit payments to participants,” he concluded, reassuring stakeholders about the protective role of government bonds in maintaining financial stability for retirees.
Summary
Indonesian pension funds are significantly rebalancing their investment portfolios, shifting from equities towards more conservative assets like time deposits and government securities (SBNs). As of July 2025, the stock portfolio declined by 9.82%, while time deposit allocations surged by 20.24% and SBN investments increased by 2.76%, indicating a clear preference for lower-risk instruments.
This strategic move is attributed by the Indonesian Pension Fund Association (ADPI) to macroeconomic, market, and regulatory factors, including attractive SBN yields and the need to manage market volatility. The primary goal is to bolster portfolio stability, safeguard asset values, and secure pension benefit payments, with this approach seen as adaptive to prevailing economic conditions.