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Jamsostek Surpasses Targets for Net Profit, Returns
Janeman Latul | December 10, 2009

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State-owned social security provider PT Jamsostek, said on Thursday that it had already surpassed its 2009 target for returns on stocks and investments.

Jamsostek said it had earned returns of 7.6 trillion ($805.6 million), 11 percent ahead of its full-year target of Rp 6.8 trillion, as of Oct. 31.

It was a turnaround from last year, when the state-owned pension fund suffered an estimated Rp 2 trillion in unrealized losses after the market crashed in the fourth quarter. This forced it to reduce its equities exposure to 11 percent to 15 percent this year from 20 percent in 2008.

“The investment return from our portfolio in 2009 has exceeded our expectations,” said Hotbonar Sinaga, Jamsostek’s president director. “We have also surpassed our net profit projection.”

Jamsostek had earned Rp 1.37 trillion of net profit by Oct. 31, ahead of its Rp 1.24 trillion full-year projection.

Hotbonar said the result would benefit Jamsostek’s members, who would enjoy returns of around 1.5 percent above current annual bank deposit rates of 5 percent to 6 percent.

The good result was mainly due to the rebound of Indonesian stocks, he said. “Our returns on stocks jumped around 50 percent,” Hotbonar said, adding that the fund invested mainly in blue chip companies such as PT Telekomunikasi Indonesia and PT Bank Mandiri.

As of Oct. 31, Jamsostek had total assets of Rp 80.6 trillion, with total investment funds of Rp 77.8 trillion. This was made up of Rp 11.67 trillion in stocks, Rp 38.9 trillion in bonds and the rest in bank deposits.

Jamsostek is the compulsory pension and social security scheme for the employees of state-owned firms.

It currently has 8.7 million active members.

Purbaya Yudhi Sadewa, a senior economist at the state-run Danareksa Research Institute, said Jamsostek had learned from last year’s failure and become wiser about investing in the capital markets.

“The new investment team has become more proactive. I think Jamsostek is on its way to a brighter future next year,” he said.