Thursday 19 November 2015

Indonesia to require pension funds hold minimum percentage of govt bonds

Indonesia plans to require domestic pension funds and insurers to keep a minimum percentage of government bonds in their portfolios to help provide stability to the debt market, the country's financial services authority (OJK) said on Thursday.

Pension funds and insurers invest around 18% of their funds in government bonds, OJK chairman Muliaman D. Hadad said, declining to specify a minimum percentage.

"This is good as a back-up, so that bonds are not too volatile, and so the domestic investor base becomes stronger," Hadad told reporters on the sidelines of a conference.

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