BPJS Ketenagakerjaan prepares to invest up to 5% offshore, focusing on AI supply chains and global equities
Indonesia’s largest social security fund is preparing its boldest diversification move yet. BPJS Ketenagakerjaan (BPJS TK) is planning to invest in artificial intelligence (AI) infrastructure companies across the US, Japan, Taiwan and South Korea—pending regulatory approval to expand overseas.
AI Infrastructure Becomes New Investment Frontier
Director of Investment Development Edwin Ridwan confirmed that BPJS TK is eyeing companies supporting the global AI ecosystem. Rather than chasing crowded chipmakers, the fund is looking at data centres, energy suppliers for AI computing, and cable companies—segments expected to benefit from rapid AI expansion.
Edwin said investment opportunities exist in the US, Taiwan, Japan and South Korea, though potential chip investments, including in Nvidia, remain dependent on valuation.
5% of Assets Set for Offshore Markets
BPJS TK currently manages Rp879 trillion (US$52 billion), and aims to allocate up to 5% of its portfolio offshore once final approval is granted. This would amount to roughly US$2.5 billion, mostly deployed through third-party managers, ETFs or mutual funds rather than private equity.
Regulations on pension asset–liability management are being drafted as the legal foundation for this overseas diversification.
Rupiah Stability Remains a Key Constraint
Despite the strategy’s urgency, Edwin underscored that execution depends on the stability of the Rupiah, which has weakened more than 3% this year to around Rp16,700 per US dollar, making it one of Asia’s worst-performing currencies in 2025.
Even if approvals come through, BPJS TK intends to wait until currency volatility subsides to avoid adding pressure on foreign exchange demand.
Domestic Market Considered “Too Shallow” for Fund Size
BPJS TK’s assets have grown rapidly—reaching US$51.56 billion by September with 13% annual growth, half of which came from mandatory worker contributions. With Indonesia’s stock market valued at US$911 billion, the domestic market is increasingly seen as too narrow.
Edwin compared BPJS TK to a “giant tanker” in local markets, but a “speedboat” when operating globally, where opportunities are more diverse and liquid.
Third-Party Execution Expected
Given current internal capacity, BPJS TK will likely rely on external fund managers for global exposure. This allows the institution—responsible for over 40 million worker accounts—to tap established expertise while minimising risk.
A Strategic Shift for Long-Term Returns
The move toward overseas diversification aligns with the institution’s mandate to deliver stable, long-term returns for Indonesian workers. By tapping global AI supply chains and broader markets, BPJS TK aims to improve portfolio resilience beyond Indonesia’s market cycles.
BPJS TK’s push into global markets and AI infrastructure marks a major turning point for Indonesia’s pension system. As regional economies—including Singapore and Indonesia—grapple with rapid technological shifts, BPJS TK’s strategy underscores the growing importance of global diversification to secure long-term financial security for workers across the archipelago.
Sources: Bisnis.com (2025) , IDNFinancials.com (2025)
Keywords: BPJS TK Offshore, AI Supply Chain Investment, Edwin Ridwan Statement, Indonesia Pension Fund, Global Diversification
