The Minister of Finance has amended the Decision No 343/KMK.017/1998 on Pension Contribution and Benefits for the second time by Decision No 91/KMK.05/2005. The purpose of amendments is to offset and reduce monthly administration fees which has become particularly important in light of the recent increase in process that have arisen as a result of the fuel subsidy reductions.

The amendments allow for the payment of monthly pension benefits of less than or equivalent to IDR 750 thousand to be paid simultaneously at the current value and with any other benefits. Additionally, the Decision also allows for the simultaneous payment of a one-off full pension benefit of less than or up to IDR 100 million. It clarifies pension benefit matters relating to individual and employer contributions, as well as the life insurance annuities purchased by pension funds for participants with benefits less than or up to IDR 100 million.

It has also stipulates that the claim and payment of initial pension benefits to widows, widowers, and heirs entitled to the pensions of the deceased to be paid simultaneously 20 percent from the pension benefits.