JAKARTA. Bank Indonesia\u2019s (BI) decision to maintain its benchmark\ninterest rate at 4.75% during the February 2026 Board of Governors\u2019\nMeeting (RDG) has been viewed positively by the general insurance\nindustry.<\/p>\n
PT Asuransi Jasa Indonesia (Jasindo) believes that interest rate\nstability, coupled with exchange rate stability, constitutes a vital\nfoundation for business certainty, effective risk management, and\nsustainable investment performance in the insurance sector.<\/p>\n
According to Jasindo\u2019s Corporate Secretary, Brellian Gema Widayana,\nthe consistent interest rate policy will not alter the investment\nstrategy already designed by the company.<\/p>\n
\u201cThis policy is in line with the company\u2019s expectations. Therefore,\nAsuransi Jasindo has no plans to change the direction of its established\ninvestment strategy,\u201d Brellian told Kontan on Saturday (21\/2\/26).<\/p>\n
In terms of portfolio management, Jasindo employs a Liability Driven\nInvestment (LDI) strategy. This approach aims to ensure that the\ncompany\u2019s asset management aligns with its liability profile, thereby\nachieving an optimal balance.<\/p>\n
Brellian added that relatively low interest rates have had a positive\nimpact on bonds, which have experienced price increases. Meanwhile,\nmutual funds remain an attractive investment option, with movements\nfollowing the type and underlying assets of each mutual fund\nproduct.<\/p>\n
Nevertheless, Jasindo sees no need to alter its current investment\ncomposition. The prevailing interest rate conditions already align with\nthe company\u2019s investment strategy established through to 2026.<\/p>\n
Furthermore, Brellian affirmed that bonds will remain the primary\ninstrument in Jasindo\u2019s investment portfolio. This is intended to\ncapitalise on the momentum of rising bond prices whilst simultaneously\naligning with the company\u2019s liability profile.<\/p>\n
Similarly, PT Asuransi Wahana Tata (Aswata) also holds the view that\nthe interest rate hold will not have a significant direct impact on the\ninsurance industry\u2019s business.<\/p>\n
Aswata\u2019s President Director, Christian Wanandi, emphasised the\nimportance of interest rate policy stability. This stability provides\nthe company\u2019s investment team with the opportunity to predict business\nconditions more accurately.<\/p>\n
\u201cWhat matters most is stability. This way, the investment team can\nmake better business predictions,\u201d he said on Friday (20\/2\/26).<\/p>\n
Christian explained that with interest rates stable at their current\nlevel, the company\u2019s investment yield targets can still be achieved in\naccordance with existing plans.<\/p>\n
Additionally, deposits are still considered an attractive and\nrelevant investment instrument as part of the company\u2019s investment\nportfolio, particularly under conditions of relatively stable interest\nrates.<\/p>\n
Meanwhile, the Chairman of the Indonesian General Insurance\nAssociation (AAUI), Budi Herawan, also affirmed that general insurance\ninvestment portfolios are not expected to undergo significant changes,\ngiven that interest rates have likewise remained unchanged.<\/p>\n
\u201cI believe the existing composition will not change significantly,\u201d\nhe explained.<\/p>\n
As additional context, based on data from the Financial Services\nAuthority (OJK) for 2025, total general insurance investments reached Rp\n131.43 trillion. The majority of these investments were allocated to\nGovernment Securities (SBN), valued at Rp 47.21 trillion.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bi-holds-interest-rates-optimal-investment-strategy-for-general-insurance-1771759203", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }