The design and regulation of asset-backed pension systems provide a framework for individuals to build sufficient resources to finance their retirement. Nevertheless, protection gaps resulting in insufficient retirement savings may still arise. One driver of these protection gaps is that the rules of the system may sometimes be inadequate to allow the population to achieve the desired objectives for retirement, appropriate schemes or vehicles may be unavailable and individuals may not necessarily make use of those that are. Additional challenges may impede the system from delivering the targeted retirement outcomes. This can lead to retirement savings gaps that can leave individuals under-protected and put their financial well-being in retirement at risk.
This report draws from the work of the OECD Working Party on Insurance and Pensions on asset-backed pensions, contributing to the dissemination of OECD standards and recommendations relating to pensions and learning from international practices. It also contributes to the Working Party’s regional outreach in Asia in the context of the annual OECD-ADBI Roundtable on Insurance and Retirement Savings in Asia. The report provides lessons from the experience of the asset-backed pension system in Indonesia, along with insights into the challenges that it faces and the policy options available to address these challenges based on international good practices.
This report has been developed by the Capital Markets and Financial Institutions Division of the OECD Directorate for Financial and Enterprise Affairs. It was prepared by Jessica Mosher under the supervision of Pablo Antolín, Head of the Insurance and Pensions Unit, and Serdar Çelik, Head of Division.
The OECD gratefully acknowledges financial support from the Government of Japan that made the preparation of this report possible. The report has also benefited from valuable exchanges and collaboration with the Indonesian Financial Services Authority.
On 20 February 2024, the OECD Council decided to open accession discussions with Indonesia. The Roadmap for the OECD Accession Process of Indonesia was adopted on 29 March 2024. In accordance with the Roadmap, Indonesia will undergo in-depth reviews by the OECD technical committees listed in the Roadmap. This report is separate from Indonesia’s accession process and does not prejudge the recommendations that may be suggested in the process.