Taspen's Potential Losses from Stock Investments in 13 Issuers Could Reach Rp762.82 Billion

Based on the report of the Semester II 2022 Summary of Audit Results (IHPS) from the Indonesian Supreme Audit Agency (BPK) [https://databoks.katadata.co.id/datapublish/2022/10/06/temuan-bpk-investasi-pemerintah-untuk-bumn-belum-buahkan-hasil-optimal], PT Taspen, which invested in shares of 13 issuers, was found to have potential losses or unrealized losses. This BPK finding has been submitted to President Joko Widodo (Jokowi).

According to Katadata [https://katadata.co.id/lonaolavia/finansial/6492c619f1ea9/bpk-soroti-potensi-rugi-investasi-saham-taspen-di-13-emiten], the BPK stated that Taspen's investment portfolio [https://databoks.katadata.co.id/datapublish/2023/06/14/kerugian-masyarakat-akibat-investasi-ilegal-tembus-rp126-triliun-melonjak-signifikan-pada-2022] in shares did not comply with the provisions of the Minister of Finance Regulation. The total acquisition value for these 13 issuers amounted to Rp1.18 trillion.

The BPK calculated unrealized losses of Rp762.82 billion for the state-owned insurance company, representing a negative 64.19% return on the acquisition price.

Unrealized losses occur when the value of shares decreases but they are not sold. As a result, the value of Taspen's investment in these 13 issuers is only Rp425.53 billion.

"This resulted in a potential loss of opportunity to generate income from funds still tied up in share investments as of September 30, 2022, amounting to Rp425.53 billion," stated the BPK report in IHPS II 2022, quoted on Wednesday (June 21, 2023).

Based on this report, the BPK recommended that Taspen's board of directors consider selling shares below the acquisition price—a "cut loss"—for shares that have incurred unrealized losses of Rp762.82 billion.

This step should be taken so that Taspen can obtain funds that can be used to reinvest in more profitable shares.

The IHPS also noted that Taspen's income from accumulated premium differences was not supported by regulations.

This resulted in a potential reduction of Rp5.25 billion in accumulated premium differences due to Taspen's income recognition.

"Regarding this issue, the BPK recommends that the board of directors of PT Taspen coordinate with the Ministry of Finance to regulate the income from accumulated premium differences," wrote the BPK.

It should be noted that Katadata has sought confirmation from Taspen regarding the BPK's recommendations. However, PT Taspen's President Director, Antonius Steve Kosasih, had not responded at the time of publication.

(See also: [https://databoks.katadata.co.id/datapublish/2023/06/22/indonesia-potensi-rugi-rp11-triliun-karena-pemerintah-tak-patuh-aturan] Indonesia Potentially Loses Rp11 Trillion Due to Government's Non-Compliance with Regulations)