Indonesia’s financial regulator has dissolved PT Otsuka Indonesia Pension Fund, an employer-sponsored pension fund, following the fund owner’s request.
A team of liquidators has been appointed to wind down the fund, settle obligations and distribute assets to members, the Financial Services Authority says in a statement on April 27. The fund’s asset details were not available.
Several other Indonesian employer-sponsored pension funds, known locally as DPPK, have been dissolved in recent years, particularly those offering defined-benefit schemes promising fixed payouts based on salary and tenure because they have become expensive for the sponsors.
“It has become increasingly costly and complex to maintain an employer-sponsored pension fund amid volatile investment returns,” a fund manager in Jakarta tells Asia Asset Management, speaking on condition of anonymity.
