ASSET LIABILITY MANAGEMENT ANALYSIS OF BPJS KETENAGAKERJAAN PENSION PROGRAM USING THE LIABILITY-DRIVEN INVESTMENT BENCHMARK MODEL APPROACH

• Main Author: Herwana, Heri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/54828
• Institution: Institut Teknologi Bandung

BPJS Ketenagakerjaan Pension Program is an old age program with a defined benefit and social insurance scheme, the funding of which is pay-as-you-go or partially funded. In accordance with Standar Praktik Aktuaria Jaminan Sosial (SPA-JS) No. 01.2015, actuarial analysis should be carried out using the opened group methodology, which considers the contributions and benefits of existing participants during the analysis and future participants. Through this method, information on projections of long-term funding flows from the program can be obtained from data from active participants and retirees, as well as long-term projected assumptions such as assumptions related to population, employment and economy. From a financial perspective, the company's ability to manage assets and liabilities will greatly determine the achievement of the goal of increasing the value of the company. Assets owned by the company are a form of investment made by the company, while the liabilities side is a reflection of external funding decisions which, if not managed properly, will actually increase the financial risk faced by the company. One approach that can be used as a solution for managing assets and liabilities or better known as Asset Liability Management (ALM) of the pension program is Liability-Driven Investment (LDI).