Indonesia’s BPJS Ketenagakerjaan, the country’s $48 billion social security fund, is planning to double its investments in equities as part of a strategy to boost long-term returns.
This move comes amid expectations of stronger economic growth and capital market performance, with officials aiming to increase equity exposure from the current 15% to around 30% of the total portfolio.
The fund’s leadership believes that investing more in stocks, both domestic and international, could help deliver higher yields while maintaining stability in the face of inflation and shifting interest rates.
Despite the higher risks associated with equity markets, BPJS says it will take a cautious, measured approach by diversifying and prioritizing well-performing, high-quality companies.
