How are Islamic Pension Funds Efforts in advancing Islamic Financial Institutions in Indonesia?

Abstract

Pension Fund is a legal entity that manages and runs programs that promise pension benefits. The increasing development of Sharia transactions in the financial industry in Indonesia allows pension funds to be managed according to Sharia. This paper aims to find out how far the increase in Sharia pension funds in Indonesia is significantly the increase for Sharia financial institutions. Pension funds are generally regulated in Law No. 11 of 1992. The primary difference between Sharia pension funds and conventional pension funds lies in receiving contributions, investment instruments, investment returns, and pension benefits. Not only that, the most noticeable difference between Sharia pension funds and conventional pension funds is the investment management system carried out to avoid usury and interest-based conventional financial investments.