Management of Pension Funds Via Agents can't be accomplished in the near future

JAKARTA,Indonesia. Pension fund management business in this country has not developed. Apart from the lack of education, this condition is also influenced by the lack of marketing channels. So far, industry players rely solely on employee benefits distribution channels to attract corporate participants.

As a result, although the niche market is still very big business, business development was stalled. Now, for market penetration, pension fund management institutions are planning to legalize lane agency to recruit new participants. "This idea we are considering," said Nicky Theng, Chairman of the Pension Fund Association.

However, Nicky reminded, the idea of using an agent can not be accomplished in the near future. The reason, to pay the agency fees are still high. In addition, the agents used to sell insurance products are melting faster commission. Meanwhile, the management of pension funds take a long time.

Not only that, pension funds are also not familiar with the operational expenses heading in the balance sheet. Solely to implement systems management fee. If the use of agents, managers must establish operational expenses. This is potentially out of the grip which is valid for this, in which all participants following the results of its development funding comes directly to the participant.

Chairman of the Association of Pension Fund Investment Nur Hasan Kurniawan, participant management of pension funds amounted to only 2 million people have neither the less than one percent of the total population of Indonesia. In fact, neighboring countries was above 10%.

Actually, some of the Pension Fund, especially those that become part of the bank, already use an agent. The cost is not burdensome for business use parent facility.

This strategy is practiced DPLK Bank Negara Indonesia (BNI). Placing management personnel in the marketing branch of BNI. "We do not use special power, because it is expensive," said Betty N Alwi, BNI DPLK leader.

For your information, from 24 pension funds, seven of which came from the banks. Meanwhile, 17 other managers of insurance. Some minor use power marketing agency for pension plans, although most of it runs through the employee benefits business.