Jakarta to ease pension, insurance fund rules

Jakarta

INDONESIA'S financial services authority aims to boost the local capital market by making it easier for pension and insurance funds to invest in riskier products, a senior official at the regulator told Reuters.

South-east Asia's largest economy is heavily reliant on offshore funding to meet growth targets and undertake infrastructure projects, with foreign investors holding nearly 40 per cent of 1,292 trillion rupiah (S$136 billion) in outstanding government bonds.

Indonesia is keen to deepen its local non-sovereign market as many companies are trying to expand, and the impending economic community among members Association of Southeast Asian Nations (Asean) is expected to increase capital flows and raise competition among individ…