Abstract
The objective of this paper is to redesign the Indonesian pension fund's business model and management system, and develop new strategies to balance profits, affordability, and sustainability. The authors consider the Malaysian pension system and adapt the INTERDAP application used by PT. Angkasa Pura II. Through this qualitative case study, we apply the foundations of the Triangle Syariah Justice Ecosystem (TSJE) to digitize the pension system and support green investment in the long run by modeling the business strategy, facilitating the business model and supplier relationship management, and creating mutually beneficial management among stakeholders. The study found that Malaysia's pension system has an investment purpose, while that of Indonesia only provides pension loans based on previously agreed cumulative contributions. Malaysia encourages people across the country to save on severance funds, and the pension system is still managed conventionally. Malaysia requires a pension contribution of 23 percent of the employee's base salary, while Indonesia requires a meagre 3 percent. This affects the contribution of pension funds to Gross Domestic Product (GDP), with Malaysia's pension fund accounting for 60 percent of GDP but Indonesia’s accounting for only 6 percent. The authors also consider that to become a developed country, pension funds need to reach 60 percent of GDP by 2045, because 42 percent of the total supply of funds in the infrastructure sector originates from pension funds. The practical implications of this study are on access to information, security, and transparency in the management of pension funds through a digital system supervised by the Syariah Regulator, alongside the Indonesian government's efforts to realize support for the green economy.References
Ahmed, Y. A. (2020). Examining the financial performance of pension funds focused on sectors related to sustainable development goals. International Journal of Sustainable Development & World Ecology, 27(2), 179-191.
Alghifari, E. S., Hermawan, A., Gunardi, A., Rahayu, A., & Wibowo, L. A. (2022). Corporate Financial Strategy in an Emerging Market: Evidence from Indonesia. Journal of Risk and Financial Management, 15(8), 362.
Berg, M. (2021). Value Judgments at the Heart of Green Transformation: The Leverage of Pension Fund Investors. Global Environmental Politics, 21(3), 77-96.
Bongini, P., & Cucinelli, D. (2019). University students and retirement planning: never too early. International Journal of Bank Marketing.
Botezatu, N. (2017). Development Opportunities for Non-State Pension Funds in the Republic of Moldova in the Context of Digital Economy. In Fostering Knowledge Triangle in Moldova: 2017 Conference Proceedings (pp. 63-69). Academy of Economic Studies of Moldova, Centre for Studies in European Integration.
Breit, E., & Salomon, R. (2015). Making the technological transition-citizens' encounters with digital pension services. Social Policy & Administration, 49(3), 299-315.
Brodjonegoro, B., & Simanjuntak, R. (2002). Pension plan in Indonesia: Avenues for reform. Hitotsubashi Journal of Economics, 151-161.
Chițimiea, A., Minciu, M., Manta, A. M., Ciocoiu, C. N., & Veith, C. (2021). The Drivers of green investment: a bibliometric and systematic review. Sustainability, 13(6), 3507.
Chygryn, O., Pimonenko, T., & Lyulyov, O. (2022). Green Investment as An Economic Instrument to Achieve SDGs. In Reducing Inequalities Towards Sustainable Development Goals (pp. 69-90). River Publishers.
Clark, G. L., & Urwin, R. (2016). Best-practice pension fund governance. In Asset Management (pp. 295-322). Palgrave Macmillan, Cham.
Della Croce, R., Kaminker, C., & Stewart, F. (2011). The role of pension funds in financing green growth initiatives.
Kasri, R. A., Haidlir, B. M., Prasetyo, M. B., Aswin, T. A., & Rosmanita, F. (2020). Opportunities and Challenges in Developing Islamic Pension Funds in Indonesia. ETIKONOMI, 19(2), 311-322.
Khansa, A. Z., & Ferdian, A. (2021). The Effect of Digital Culture on Employee Performance at Telkom Pension Fund. Asian Journal of Research in Business and Management, 3(3), 158-162.
Muminova, E., Honkeldiyeva, G., Kurpayanidi, K., Akhunova, S., & Hamdamova, S. (2020). Features of introducing blockchain technology in digital economy developing conditions in Uzbekistan. In E3S Web of Conferences (Vol. 159, p. 04023). EDP Sciences.
Norman. E, Pahlawati. E. 2021. Syariah Pension Fund Management. Reslaj: Religion Education Social Laa Roiba Journal. Volume 3 Nomor 2 (2021) 227-235 P-ISSN 2656-274x E-ISSN 2656-4691. DOI: 10.47476/reslaj.v3i2.349
Purnamasari, S. D., & Rani, L. N. (2019). Risk Management of DPLK Pension Funds of Syariah Financial Institutions (Evidence from a DPLK Pension Funds of Muamalat Syariah Financial Institutions). KnE Social Sciences, 469-491.
Sari, H. E., Wandanya, A. B., & Hanifah, A. N. Sistem Informasi Pembayaran Dana Pensiun Angkasa Pura II Menggunakan Aplikasi Interdap. Innovative Creative and Information Technology, 5(2), 191-199.
Seran, P., Sucahyo, U. S., Atahau, A. D. R., & Supramono, S. (2022). Investigating the Efficiency of Indonesian Employee Pension Funds. Romanian Economic Journal, 25(83).
Sun, Y., Yesilada, F., Andlib, Z., & Ajaz, T. (2021). The role of eco-innovation and globalization towards carbon neutrality in the USA. Journal of environmental management, 299, 113568.
Walter, I. (2016). The infrastructure finance challenge. Available at SSRN 2841281.
Yuliani.M. (2017. Management of Non-Bank Funding Institutions Pension Based on Syariah Principles. Tanjung Redeb Muhammadiyah College of Economics.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
MBER have CC-BY-SA or an equivalent license as the optimal license for the publication, distribution, use, and reuse of scholarly work.
In developing strategy and setting priorities, MBER recognize that free access is better than priced access, libre access is better than free access, and libre under CC-BY-SA or the equivalent is better than libre under more restrictive open licenses. We should achieve what we can when we can. We should not delay achieving free in order to achieve libre, and we should not stop with free when we can achieve libre.
MBER is licensed under a Creative Commons Attribution 4.0 International License
You are free to:
- Share copy and redistribute the material in any medium or format
- Adapt remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.