Taspen reports 15.30 percent increase in assets

JAKARTA. PT Taspen , the state-owned civil servant pensioners saving and insurance company, reported assets valued at Rp198.62 trillion by the end of 2016 up 15.30 percent from Rp172.26 trillion a year earlier.

"The 15.30 percent growth in assets in 2016 was quite strong for a company's assets worth trillions of rupiahs, its President Director Iqbal Latanro said here on Sunday.

Iqbal attributed the strong performance to the management success in carrying out strategic working program in investment, service and information technology.

He said the growth in assets in 2016 was driven by increase in investment assets that reached Rp167.35 trillion growing 17.58 percent from Rp142.32 trillion in 2015.

He said the largest part of investment assets was in bonds , sharia bond and securities collective investment contracts with collateral (KIK EBA) reaching Rp124.28 trillion. There were also deposits totaling Rp28.28 trillion and non investment assets totaling Rp31.27 trillion , up only 4.4 percent.

The increase in investment fund resulted in a 23.04 rise in investment gain to Rp15.21 trillion from Rp12.36 trillion.

"Since 2015, Taspen tried to change its investment strategy by cutting deposit portfolio as a result of a cut in bank interest rate, and we are more aggressive in corporate bond portfolio," Iqbal said.

However, in 2016, Taspen recorded lower net profit at Rp247.25 billion, shrinking 57.22 percent from Rp577.90 billion in 2015 on a sharp increase in claims from Rp4.5 trillion in 2015 to Rp8.1 trillion last year.

"The rise in claims paid by the company put pressure on the business achievement . Normally claims averaged Rp4.5 trillion every year," he said.

Meanwhile, Finance Director of Taspen Iman Firmansyah said in 2016, the largest allocation of distribution of assets was in government securities (SUN), interest rate , corporate bonds , making up 74 percent, followed by government, regional banks and private banks time deposits accounting for 32 percent and shares and mutual funds 9 percent.

In 2016 , Taspen carried out program of portfolio switching by increasing allocations of direct investment in three sectors -- infrastructure, banks, and financial services.

"In 2016, Taspen's direct investment reached Rp1.9 trillion or around 2 percent of its total investment. In 2017, the target for direct investment allocation is set at 4 percent or Rp8.5 trillion," Iman said.

Taspen paid claim in accident insurance (JKK) and death insurance (JKM) respectively at Rp538.7 million and Rp44.13 billion in 2015 and in 2016, claims rose to Rp8.12 billion to Rp752.07 billion respectively.