Indonesia’s Financial Services Authority (OJK) outlined priorities to expand pension coverage, improve benefit adequacy and strengthen pension funds as long-term institutional investors supporting domestic financial market development. The agenda complements OJK’s broader 2026 focus on stronger governance, prudential standards and risk-based supervision across the pension sector. Pension participation reached about 30.67 million people as of July 2026, while assets rose 6.70% from a year earlier to IDR 1,699.99 trillion. Despite this growth, pension literacy stood at 22.21%, inclusion at 5.10% and the income replacement ratio at 15% to 20%, below the 40% standard cited by OJK. The authority identified financial literacy, affordability, access and trust as structural barriers, particularly for informal and self-employed workers. OJK is promoting wider participation among formal, informal and self-employed workers, more flexible products, digital distribution and stronger partnerships across the pension ecosystem. These measures are intended to narrow the pension protection gap while creating a larger, more stable pool of long-term capital for financial markets and the economy.
2026-09-25OJK
Indonesia's Financial Services Authority targets wider pension coverage and a larger long-term investment pool
Indonesia’s Financial Services Authority is prioritizing wider pension participation, more adequate benefits and a stronger role for pension funds as long-term investors. Assets reached IDR 1,699.99 trillion and participation totaled about 30.67 million people as of July 2026, but low inclusion and replacement ratios point to a substantial protection gap. OJK is promoting flexible products, digital access and broader coverage of informal and self-employed workers.