Job Creation Bill May Beset Pension Fund Industry
Translator
Editor
19 February 2020 08:29 WIB
TEMPO.CO, Jakarta - The Indonesian Pension Fund Association (ADPI) head Suheri assessed that the drafts of the omnibus law on job creation (RUU Cipta Kerja) potentially hamper the industry of pension funds.
Suheri explained that the bill might affect the industry if Article 167 of Law No. 13/2003 on the employment was removed. The article was reportedly one of the 28 articles in the policy that would be annulled.
“So far, pension funds can be used as reserves for severance pay. If Article 167 is revoked, it can be no longer use as the reserves,” Suheri told Bisnis on Tuesday, February 18.
According to him, the article reduction potentially decreased the company’s interest in providing pension funds for employees. “Companies are probably not interested to have pension funds because it is voluntary,” he added.
Meanwhile, the Financial Institution Pension Fund (DPLK) director Syarif Yunus said the DPLK industry would face two challenges if the job creation omnibus law takes effect, namely the clarity of derivate regulations on employment and compensation of DPLK program with all work termination program.
BISNIS | ANTARA
