The OECD-IOPS Global Forum on Private Pensions 2024, held on November 19-20 in Bali, marked a significant milestone for international pension systems. Organized by the Financial Services Authority (OJK) of Indonesia in collaboration with the Organisation for Economic Co-operation and Development (OECD) and the International Organisation of Pension Supervisors (IOPS), the event emphasized the importance of strengthening global pension frameworks and expanding financial inclusion.

At the close of the forum, OJK Deputy Chairman Mirza Adityaswara highlighted key takeaways, which included the crucial role pension funds play in bridging financial gaps and contributing to long-term economic growth. Pension systems are increasingly seen not only as a means of ensuring retirement security but also as powerful instruments for supporting capital markets and sustainable economic development.

More than 150 participants from 42 countries convened to discuss critical strategies for enhancing pension systems worldwide. A key focus was the integration of Environmental, Social, and Governance (ESG) principles into pension fund strategies, aiming to address global challenges while ensuring long-term returns. Moreover, the forum underscored the potential of digitalization to increase financial inclusion and expand pension coverage, particularly for those in the informal sector.

Mirza emphasized that these discussions would fuel collective efforts to advance global pension agendas. He also expressed gratitude to both the OECD and IOPS for their continued support in facilitating the forum. This collaboration underscores a shared commitment to building a more robust, inclusive, and sustainable global pension system, essential for addressing global economic challenges.

OJK Chairman Mahendra Siregar opened the forum with a detailed update on Indonesia's pension reform efforts. Focused on four main pillars—capital strengthening, market deepening, governance improvement, and international best practices—the reforms aim to enhance Indonesia's pension system, ensuring it meets the needs of a growing economy. Siregar also stressed the importance of harmonizing voluntary and mandatory pension schemes, particularly to extend pension coverage to the informal sector.

The pension industry in Indonesia has demonstrated steady growth, with assets reaching IDR 1,500 trillion (USD 95 billion) by September 2024, up 10.1% from the previous year. This expansion highlights the ongoing development of the sector and reflects the positive impact of regulatory efforts.

In addition, the forum saw the announcement of OJK's successful election to the Executive Committee of IOPS for the 2025-2026 period. IOPS, an organization founded in 2004, aims to strengthen pension supervision worldwide. With 92 members representing 82 countries, IOPS plays a key role in shaping global pension policy. OJK’s election signifies Indonesia’s growing influence in the global pension landscape and its commitment to active participation in the development of international pension policies.

OJK's Chief Executive for Insurance, Pension Funds, and Guarantee Supervision, Ogi Prastomiyono, emphasized Indonesia’s readiness to learn from the experiences of other countries in developing better pension systems. He expressed confidence that through collaboration and sharing insights with IOPS members, global pension challenges can be effectively addressed, fostering more sustainable and inclusive systems.

The OECD-IOPS Global Forum on Private Pensions 2024 has set the stage for more comprehensive international collaboration on pension reform. With a focus on innovation, ESG principles, and digital inclusion, the forum's outcomes are expected to play a vital role in shaping the future of global pension systems, ultimately benefiting millions of people worldwide.