OJK Adjusts Pension Fund Regulations Following MK Decision

The Financial Services Authority (“OJK”) will make adjustments to OJK Regulation No. 27 of 2023 on the Organization of Pension Fund Business (“POJK 27/2023”). The regulation follows up on a decision of the Constitutional Court (“MK”) aimed at protecting the constitutional rights of workers in relation to severance pay, long-service awards, and/or compensation for loss of rights payable to participants.

“In principle, pension benefits may be paid either as a lump sum or periodically, at the participant’s option,” said Ogi Prastomiyono, OJK’s Chief Executive of Insurance, Guarantee, and Pension Fund Supervision.

Before finalizing the amendments to POJK 27/2023, OJK had first taken a tactical measure by issuing Decree of OJK Board of Commissioners’ Member No. KEP-54/D.05/2026 on the Granting of Approvals or Different Policies as the operational basis for the transition period to ensure compliance with the MK Decision. “The harmonization and adjustment of the previous POJK are already underway,” he added.