14
Investment
has a significant role
in a pension
fund,
mainly
to
increase the wealth of the
Pension Fund. Investment for the pension fund should consider several factors (Wahab,
2005, p. 29):
1. Security factor, which means relatively low risk.
2. Objectives of the investment.
3.
Diversification of investment by spreading investment risk in accordance with
present regulation.
Investment of pension fund wealth should be in harmony with the characteristic of
pension
fund
responsibility,
which
is
to
pay
pension
benefit
to the participants.
Government
regulates
types
of investment
which
pension fund
can
participate
and
its
restriction through Finance Minister Decree Number 511/KMK.06/2002 that stated:
1.
Time
deposit,
on
call
deposit,
and
deposit
certificate,
with the
limitation
that
placement
in
a
single
bank
can
not
exceed
20
percent
from
the
total
pension
fund investment [Chapter 6 article (1) letter b and c, Chapter 11 article (1)]
2. Shares,
bond,
and
other
marketable
securities
listed
in
the
Jakarta
Stock
Exchange. Placement
in a single party on those
items can
not exceed 20 percent
of the total pension fund
investment [Chapter 6 article (1) letter d and e, Chapter
11 article (1)]
3. Direct placement on shares or debt security above one year, but not exceeding 10
years which based on Indonesian law with
the regulations that placement in a
single
party can
not
exceed
20
percent
of
the
total
pension
fund
investment
[Chapter 6 article (1) letter f and g, Chapter 9 article (1)]
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