Jakarta, CNBC Indonesia \u2014 Insurance companies are among the\ninstitutional investors affected by the weakening of the Jakarta\nComposite Index (IHSG). Players in the industry are highlighting\nthis.<\/p>\n
The pressure on the capital market is also reflected in the\ninvestment performance of the life insurance industry in the first\nquarter of 2026. The investment results of the life insurance industry\nrecorded a contraction of up to IDR 1.6 trillion in the first quarter of\n2026.<\/p>\n
Of the entire investment portfolio, equity instruments contributed\napproximately IDR 112.64 trillion, or a decrease of 5.9% year on\nyear.<\/p>\n
The Chairman of the Indonesian Insurance Council (DAI), Yulius\nBhayangkara, said that he hopes the weakening of the IHSG is only\ntemporary. According to him, the stock market still has the potential to\nrecover as economic conditions and market sentiment improve.<\/p>\n
However, Yulius emphasized that placing investments in the capital\nmarket is not the primary choice for the insurance industry due to its\nrelatively high risk. He said that the investment management of\ninsurance companies must still consider the company\u2019s obligations or\nliabilities.<\/p>\n
\u201cWe hope that the decline in the IHSG is only temporary. So we still\nhope for a rebound. Placing investments in the capital market is indeed\nnot the primary choice given the relatively high risk,\u201d said Yulius to\nCNBC Indonesia, Wednesday (3\/6\/2026).<\/p>\n
He added that investment placement must be in line with the insurance\ncompany\u2019s obligation to fulfill claim payments to customers (liability\nmatching). According to Yulius, insurance companies are required to\nensure sufficient liquidity to meet short-term and long-term\nobligations.<\/p>\n
He acknowledged that stock investments can provide optimal returns\nwhen economic conditions are good. However, insurance companies must\nstill implement appropriate risk management and carry it out in a\ndisciplined manner to maintain the company\u2019s financial health.<\/p>\n
Meanwhile, President Director of Asuransi Astra, Maximiliaan\nAgastisianus, as one of the private players, said that the recent\nvolatility in stock prices has not had a significant impact on the\ncompany\u2019s investment portfolio. This is because of the characteristics\nof the general insurance business, which is more focused on fulfilling\nshort-term obligations.<\/p>\n
According to Maximiliaan, Asuransi Astra\u2019s investment portfolio is\nmore placed on money market instruments and bonds or fixed income\ncompared to stocks. With this composition, the company\u2019s exposure to\nstock market fluctuations is relatively very small.<\/p>\n
\u201cIf it\u2019s in stocks, it\u2019s very minimal, so it\u2019s not too affected,\u201d\nsaid Max when met after the Asuransi Astra Media Conference, Wednesday\n(3\/6\/2026).<\/p>\n
He added that for money market instruments and bonds, the company\nonly follows the development of the prevailing yield or return rate in\nthe market.<\/p>\n
It is known that the IHSG has continued to be under pressure since\nthe beginning of 2026. As of the close of trading on Wednesday\n(3\/6\/2026), the IHSG fell 4.11% or 254.36 points to 5,941.07.<\/p>\n
The correction has brought the IHSG to its lowest level in the last\nfive years. The last time the index closed lower than the current\nposition was in May 2021, when the market was still in the recovery\nphase after the shock of the Covid-19 pandemic in 2020.<\/p>\n
(mkh\/mkh) Add as a preferred source on Google<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ihsg-plunges-to-2021-levels-what-is-the-impact-on-the-insurance-industry-1780548725", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }