Indonesia’s BPJS constrained by domestic mandate, short-term focus

Indonesia’s largest institutional investor, the $45 billion social security BPJS Ketenagakerjaan, is struggling to invest its rapidly growing fund pool. With 40 million members and a young population, the BPJS has accumulated $45 billion since it was restructured in 2014 as a state fund. Member contributions are growing 13-15% annually, which equates to $6-7 billion of new money every year. The limitations of the fund’s investment mandate, to only invest domestically, make it im…