Criteria for Private Pension Funds That Must Have 'Fit and Proper' Managers

The Head of the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) has released a regulation that provides further implementation of Article 3A of Minister of Finance Decision No. 513/KMK.06/2002 (as amended by Minister of Finance Regulation No. 36/PMK.010/2010). The newly-released regulation, incorporated in the Head of Bapepam-LK Regulation No. PER-02/BL/2010 (“Regulation”), lays out the criteria for privately-managed pension funds to require managers to have passed a fit and proper test. 

Generally, pension funds are divided into two types: privately-managed pension funds, and publicly-managed pension funds. Privately-managed pension funds include ‘Employer Pension Funds’ and ‘Financial Institution Pension Funds,’ while publicly-managed pension funds include state-owned pension fund companies, such as PT. Taspen, PT. Jamsostek, and PT Asabri.

It must be noted that according to Article 3A (1) of Minister of Finance Decision No. 513/KMK.06/2002 (as amended by Minister of Finance Regulation No. 36/PMK.010/2010), there are certain private pension funds, whose managers are required to have passed a fit and proper test. Such private pension funds are defined in the Regulation, which serves as the implementation of Article 3A of Minister of Finance Decision No. 513/KMK.06/2002 (as amended by Minister of Finance Regulation No. 36/PMK.010/2010).  

Under Article 2 of the Regulation, private pension funds that are required to have managers who are considered ‘fit and proper’ are as follows: 

The Regulation was issued on 14 September 2010, but will only come into force on 13 February 2011.