Preparing for the worst, BP Jamsostek to focus on short-term portfolio
JAKARTA. Employees Social Security System, also domestically known as Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan or BP Jamsostek, will redirect its current focus on short-term investment portfolio, such as deposits, as a way to prepare itself for the incoming recession in 2023.
Anggoro Eko Cahyo, President Director of BP Jamsostek, claimed that the focus of BP Jamsostek is on anticipatory steps, the adequate investment portfolio management, and the risk management improvement. In order to face the possible recession, since the end of 2021, his company has been focusing on short-term investments, such as deposits, which have reached IDR 100 trillion as of now.
Aside from deposit, BP Jamsostek also made purchases of government bonds with short tenor to anticipate the ever-increasing interest rate. Cahyo revealed this plan further during the Public Hearing Meeting with Commission IX of House of Representatives (DPR) of Indonesia this week. The short-term investment portfolio placement is a way to manage the asset liquidity when facing the inflation and the rising interest rates. “We do not wish to see limited liquidity once the number of claims arises,” he added.
In other words, BP Jamostek is currently leaning towards preservation of capital instead of chasing return. This strategy aligns well with the currently visible attitude of the majority of global investors. They tend to favour short-term investments and wish to stay liquid, as well as avoiding risky assets, such as the capital market. (AM/ZH)