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Implementation of the Regulation of Pension Fund Investment Instruments and their Impact toward the Return on Investment Industry of Financial Institution Pension Funds in Indonesia


Alfiana, Ervina CM Simatupang and Siska Putri
Abstract

This study aims to find out which investment instrument choices have an impact on the profits of the financial institution pension fund industry, measured through Return on Investments. This research is an explanative study with monthly statistical data (monthly pensions fund statistics) financial institution in Indonesia, using multiple regression. The results showed that the investment services by the financial services authority for the pension fund industry were Asset Backed Security, Bond, Building, Central Bank Bond, Certificate Deposit, Investment Collective Contract, Deposit On Call, Direct Placement In Share, Government Bond, Land, Land and Building, Medium Term Notes, Mutual Funds, REPO, Savings, Shares, Stock Option Contracts, Sukuk, Time Deposits there are only three investments that have an impact on return on investment, namely Sukuk, and Asset-Backed Security which had a positive impact while Share had a negative impact on the benefits of the financial institution pension fund industry. This research is useful for industrial pension fund financial institutions in investing their funds in order to generate a high return on investment as well as the financial services authority in making changes to instrument policies and the proportion (allocations) investment of pension funds.

Volume 11 | 03-Special Issue

Pages: 197-203