Indonesia’s Pension Fund to Buy More Bonds This Year
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PT Jaminan Sosial Tenaga Kerja, Indonesia’s state-pension fund, plans to increase its allocation to bonds this year to benefit from rising yields and as gains in the stock market slow.
The fund, which has about $11 billion of assets, will raise fixed-income holdings to at least 44 percent of total investments from 41 percent, and keep equities at up to 22 percent, Investment Director Elvyn Masassya said in an interview in Jakarta yesterday. A 50 basis-point increase in interest rates may be enough to cope with faster inflation and the Jakarta Composite Index may end the year as much as 20 percent higher, he said. The gauge gained 46 percent last year.