Indonesia’s financial regulator has placed 11 pension funds and six insurers and reinsurers under special supervision because of concerns about their financial strength.
Ogi Prastomiyono, chief executive of the insurance, guarantee and pension fund supervision at the Financial Services Authority, cited, among other things, low investment adequacy, liquidity and solvency ratios, as well as lack of capital and inability of shareholders to make capital injections.
“We hope that with the special supervision, the companies can improve their financial condition for the benefit of the members and policyholders,” he said at a virtual press conference on May 12.
He did not disclose their identities.
The pension fund industry in Indonesia managed 380.67 trillion rupiah (US$23 billion) of assets as of end-January.