Investment Milestones of BPJS Ketenagakerjaan

Investment Milestones of BPJS Ketenagakerjaan

Investment Milestones of BPJS Ketenagakerjaan Elvyn G Masassya
Mandiri Investment Forum Ritz Carlton, 27 Januari 2015 Vision To be a trusted, friendly EXCEL in WORLD, and OPERATIONS class social security organization
and SERVICES Image designed by freepik.com 2 Road to BPJS Ketenagakerjaan 2018 2016 2017 2018 Membership Establishment Workers Welfare Delivering Service Excellence Delivering operaNonal excellence Services Members: 80% formal workers & 5% informal workers Customer saJsfacJon 92% Investment Funds under management more than Rp. 500 Trilion Brand Brand Equity: 85 World Class Services Sustainable Customer InJmacy Leading Good Investment Governance 2015 World Class Smart Financial Management Full Program OperaNon Employer of Choice 2014 Good Governance & Zero Fraud Sustainability Benefit & Service World Class Social Security AdministraJon 3 BPJS KETENAGAKERJAAN
Program Death Benefit
Employment Injury
Benefit
ContribuJon : 0,3% (Employer) = UU 3/1992 Provident Fund
ContribuJon : 5 Tariff (employer) Adequacy = UU 3/1992 ContribuJon: 3,7% (employer) 2% Employee BPJS
KETENAGAKERJAAN
= UU 3/1992 In Cash and In Kind Benefit Sustainability Pension Benefit Operate 1 July 2015 Investment Strategy of BPJS Ketenagakerjaan Ease of access on public transportaJon •  Prudent and professional investment management to benefit the members High investment yield •  Complied investment process and procedure •  Long term stability and reliability investment yield •  Total “value” rela;onship approach TransportaNon Financial Benefits Benefits Health Benefits Clinics at high concentrated workers area BPJS TK Inc. •  Reciprocal business •  Investment approach by considering the impact on social and environment •  Three subsidiaries establishment Housing Benefits Food Benefits Affordable food for workers Affordable housing for workers 5 5 Year Investment Plan BPJS Ketenagakerjaan 2018 •  AUM Rp 390,66 T, Investment Income Rp 31,06 T •  2 new subsidiaries established •  Intensify strategic alliance subsidiaries – BPJS TK •  Enhance Investment crisis protocol •  Good Investment Governance •  AUM Rp233,16 T, Investment Income Rp 19,4 T •  Fully Operates 3 Subsidiaries •  Extend Total Benefit •  Investment porcolio: Solid & Comply •  Integrated System & Infrastructure •  Building Investment crisis protocol •  Building best model for Strategic Alliance Subsidiaries – BPJS TK •  Good Investment Governance Leading Good Investment Governance 2017 •  AUM Rp 515,73 T, Investment Income Rp 40,01 T •  6 excellent performance subsidiaries •  Role model Good Investment Governance in Social Security Intensify Total Benefit •  AUM Rp 299,11 T, Investment Income Rp 24,3T •  1 new subsidiary established •  Implement Best Strategic Alliance Subsidiaries -­‐ BPJS TK Excellent Direct Investment •  Established Investment crisis Performance protocol •  Good Investment Governance 2016 2015 Implement New Investment Paradigmn 2014 Strengthening Capacity for New Investment Role •  AUM Rp185 T, Investment Income Rp15.8 T •  3 new Subsidiaries established •  Rebalancing Porcolio •  System & Infrastructure IntegraJon •  Enhancing Investment Infrastrucuture & Personnel 6 AUM & Investment Income Performance 2008 -­‐ 2014 Portfolio
2008
2009 2010
2011
2012
2013
2014
Time Deposit Bonds Equity Mutual Funds Property 20,513 27,257 31,198 32,867 41,743 40,190 53,837 29,893 35,864 39,744 46,668 53,712 64,809 79,520 8,846 14,044 21,921 23,440 27,436 31,811 37,767 1,947 3,014 5,618 8,370 9,558 12,011 14,737 510 487 469 447 370 358 1,118 D irect I nvestment 43 37 38 39 47 45 42 Total 61,752 80,703 98,988 111,832 132,866 149,224 187,021 Portfolio
Time Deposit Bonds Equity Mutual Funds Property 2008 2009 2010 2011
1,683 3,840 1,543 104 75 D irect I nvestment 0 Total 2,839 4,395 1,594 119 77 1,973 4,285 2,191 279 75 2012
2013
2014
2,728 2,714 2,714 4,751 4,712 5,260 6,011 7,102 3,548 4,214 4,868 8,661 794 907 1,159 2,655 88 108 123 128 5 1 2 4 1 3 7,244 9,029 8,806 11,872 13,207 14,877 23,300 •  2008 – 2014 : 1.  Growth AUM 20,28% (yoy) 2.  Growth Investment Income 21,48% (yoy) 3.  Investment Income 2014 include unrealized gain Rp5,16 T 4.  FY2008-­‐2013 data are audited, FY 2014 data is unaudited •  Source of Growth: 1.  Source of contribuJon 2.  Investment Income 3.  ImplemenJng Investment Principles ROLES IN FINANCIAL DEEPENING
INDONESIA Full Program OperaNon on July 1st 2015 Provident Fund Employment Insurance Benefit Death Benefit Pension Benefit •  Current Asset AllocaNon: Money Market (30%); Capital Market (69%); Property & Direct Investment (1%) •  Proposed new government regulaNons: new instrument (municipal bonds), max alocaNon per instruments/company etc 8
ASSETS ALLOCATION 2014
Asset AllocaNon 2014 Property 0,60% Direct Investment 0,01% Mutual Funds 7,88% Time Deposit 28,79% Equity 20,20% Bonds 42,52% TIME DEPOSIT 2012 -­‐‑ 2014
n 
n 
n 
Majority placement in SOE and Municipal Prudent SupporJng economics in rural area BONDS 2012 -­‐‑ 2014
Goverment & Corporate Bonds
100% 80% 43.74% 41.18% 32.25% 60% 40% 20% 67.75% 56.26% 58.82% 0% 2012 2013 2014 Corporate Bonds Goverment Bonds n 
n 
n 
Majority in Goverment Bonds Prudent and supporJng APBN Low risk, Long term and opJmal yield. Sectors
EQUITY 2012 -­‐‑ 2014
n 
n 
n 
n 
n 
Focus on LQ 45 & SOE Stocks. Prudent, opJmal expected return. Fundamentally strong. Liquid stocks and daily transacJonal. Market maker not follower. MUTUAL FUNDS 2012 -­‐‑ 2014
Types of Mutual Funds %
Equity
Mixed
Fixed Income
Index ETF
Total
2012
2013
2014
88,37% 83,42% 83,62%
4,37%
5,39%
5,83%
7,26% 11,18% 10,56%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
100,00% 100,00% 100,00%
120.00% 100.00% 7.26% 4.37% 80.00% 11.18% 5.39% 10.56% 5.83% ETF Index 60.00% 88.37% 40.00% Fixed Income 83.42% 83.62% Mixed Equity 20.00% 0.00% 2012 2013 2014 Performance Rate of Return JHT Program vs. Time Deposit 12
10
10.6
10.6
10.1
9.1
8
6
7.11
8.68
7.26
6.5
6.35
4
5.5
2
0
2009
2010
Bunga Deposito
2011
2012
2013
Pengembangan JHT
Rate of return on JHT Program in 2013 achieve 1.42% above average time deposit rate
SOE Banks
14
Investment AUM 2014F-­‐2018F Investment Fund (IDR Triliun) 600.00 515,73 500.00 390,67 Rp. Triliun 400.00 299,12 300.00 233,16 200.00 185,07 100.00 -­‐ 2014 (RKAT) 2015 2016 2017 2018 8.08 8.92 10.29 12.79 17.06 Program JP -­‐ 0.54 4.41 13.79 32.62 Program JK 3.68 5.53 8.25 12.20 16.31 Program JKK 11.70 15.96 21.79 29.87 38.15 Program JHT 161.60 202.20 254.37 322.01 411.59 Program BPJS Program CAGR (%) JP 291,67 JKM 45,06 JHT 26,33 JKK 34,37 BPJS 20,56 Total 29,02 Resilient Financial Market
• Based on 1997 and 2008 market crash, Indonesia needs resilient financial sector.
• Resilient means deep and liquid financial market.
• BI and Government support are crucial.
120
103.15
100
78.13
80
59.82
60
40
46.63
37.01
20
9.62
13.19
18.31
25.01
0
2014
2015
2016
Stock Portfolio
2017
Addition
2018
• 2014-­‐2018 projection: BPJS Ketenagakerjaan Stock portfolio growth around 30% CAGR, about IDR 103 T in 2018.
• Foreign and other local investor will also growing.
• This means investor really need resilient stock market.
INVESTMENT PREFERENCES
1 TIME DEPOSITS
1)  Big Assets & Healthy Bank 2)  Good Assets Quality 3)  Fundamental Strong 2 1) 
2) 
3) 
4) 
5) 
EQUITIES
Fundamental Strong Bigger Market Cap to support Liquidity AmracJve ValuaJon More variety stocks Favorable SOE stocks 17
INVESTMENT PREFERENCES
3 1) 
2) 
3) 
4) 
5) 
MUTUAL FUNDS
1)  Higher AUM 2)  Good strategy & asset allocaJon to support liquidity 3)  Professional Fund Manager 4 BONDS
Fundamental strong Diversify sectors other than mulJ finance Higher issuance size Longer term horizon Good raJng ( min A raJng) 5 DIRECT INVESTMENTS
1)  Focus on infrastructure projects through RDPT equity based 2)  Developing affordable housing for the benefit of the members 3)  SupporJng core business & total benefit 18
SUPPORT FROM REGULATORY SIDE
I
N
V
E
S
T 1)  Good Governance in investment partners 2)  BoosJng New Listed Company 3)  New incenJves to encourage growth of the company 19
Thank You!
Kantor Pusat BPJS Ketenagakerjaan
Gedung Jamsostek
Jl. Jend. Gatot Subroto No. 79
Jakarta Selatan – 12930
T (021) 520 7797
F (021) 520 2310
www.bpjsketenagakerjaan.go.id