Overconfidence and Cognitive Dissonance Behavior in the Pension Fund Investment Manager in the New Normal Era

Abstract

This study aimed to explore overconfidence and cognitive dissonance behavior in the Pension Fund Investment Manager, both DPPK (Dana Pensiun Pemberi Kerja / Employer Pension Fund) and DPLK (Dana Pensiun Lembaga Keuangan / Financial Institution Pension Fund) in the New Normal era after Covid-19 Pandemic. Used the qualitative phenomenological method, data collection carried out by in-depth interviews with six informants who were representatives of 3 pension funds. The results indicated that from a prudent perspective, DPPK was more conservative than DPLK, for safety considerations, tight control from superiors, and the least fund made the Investment Manager not function properly. Unlike the DPLK, which had a larger fund, innovating in investment management was more significant. They tend given the freedom to be responsible for managing investment funds, although they still didn't violate the corridors and rules of the OJK. These results showed the DPLK had a higher return than the DPPK.