Pension Funds for Housing Development in Indonesia: Challenges and Strategies

Thomas Soseco, Anggari Marya Kresnowati and Ayu Dwidyah Rini
Additional contact information
Thomas Soseco: Universitas Negeri Malang, East Java, Indonesia
Anggari Marya Kresnowati: Universitas Islam Negeri Sunan Kalijaga, Yogyakarta, Indonesia
Ayu Dwidyah Rini: Universitas Trilogi, Jakarta, Indonesia

Economics and Finance in Indonesia, 2025, vol. 71, 31-47

Abstract: Housing infrastructure is necessary to improve the quality of life of the community, yet a recent assessment of housing infrastructure development in Indonesia highlights a low level of performance. Therefore, actions are needed to stimulate it through pension funds, which remain minimally utilized for direct investment in the housing sector. This research investigates the potential and challenges of using pension funds for housing investment in Indonesia, employing Input Output (IO) Analysis with data from Statistics Indonesia (BPS). The findings reveal a significant gap between the potential and realized pension fund investments, indicating the substantial capacity of pension funds to be directed towards investment in the housing sector. Two strategies are recommended to address this. First, maximizing pension fund revenue, mainly among population groups underserved by pension funds, such as micro, small, and medium business owners and informal workers. Second, reorienting policies to enhance investment opportunities in the housing sector while overcoming future challenges.

Keywords: housing; infrastructure; pension fund (search for similar items in EconPapers)
JEL-codes: E22 G23 R31 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://lpem.org/repec/lpe/efijnl/202503.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:202503

Access Statistics for this article

More articles in Economics and Finance in Indonesia from Faculty of Economics and Business, University of Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Muhammad Halley Yudhistira ( this e-mail address is bad, please contact ).