Jakarta, Sept. 25 -- Indonesia's Financial Services Authority (OJK) is preparing regulations to allow domestic pension funds to invest abroad under strict oversight to help diversify portfolios when local investment returns prove insufficient.

Speaking at the 2026 Indonesia Pension Fund Summit (IPFS) on Friday, Ogi Prastomiyono, OJK Chief Executive of Insurance, Guarantee, and Pension Fund Supervision, emphasized that offshore allocations will serve strictly as a secondary option.

"This is a safeguard in case there are no alternatives or the returns from domestic investment are not good enough," Prastomiyono said. "But this will be carried out under very strict conditions, so it will not be easy to invest abroad."

Regulators will issue...