8
According to the Pension Fund Law No.11 year 1992, there are two types of pension
fund in Indonesia:
1. Dana Pensiun Pemberi Kerja (DPPK)
Pension Fund
that created by employer/company
for the benefit of
the employees.
DPPK has two types of program:
Program Pensiun Manfaat Pasti (Define Benefit Plan)
Defines the benefit that the employee will receive at the time of retirement
Program Pensiun Iuran Pasti (Define Contribution Plan)
Employer agrees to contribute
to a pension plan a certain
sum each period
based on a formula
2. Dana Pensiun Lembaga Keuangan
Pension
Fund,
which
form
by
a
bank
or
live
insurance
company
that
perform
define contribution plan program.
Figure 2.1 Pension Fund Types in Indonesia
Source: Tunggal 1999. p.178
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