AAJI States Bond Yield Increase is Positive for Investments

The rise in bond yields, triggered by sentiments surrounding the war in the Middle East and the downgrade of Indonesia’s outlook, is considered positive for life insurance investments. The Indonesian Life Insurance Association (AAJI) conveyed this view. AAJI Board Chairman Albertus Wiroyo stated that the increase in bond yields can boost investment returns. “The rise in bond yields is, of course, having a positive impact. This means that investment returns are improving further,” Albertus remarked during an AAJI press conference in South Jakarta on Friday (13/3/2026), as quoted from Keuangan. Albertus added that if new investments can be placed in bonds, the results will be even more positive. According to him, bond instruments, such as Government Securities (SBN), remain the main pillar of the life insurance industry’s investments. AAJI emphasised that the life insurance industry adheres to prudential, long-term investment principles, diversification, and alignment between liabilities and assets. Therefore, investment adjustments must consider these principles. Based on AAJI data, the industry’s investments in SBN reached Rp248.25 trillion in 2025, an increase of 20.9% compared to the previous year. SBN contributed 42% to the industry’s total investments in 2025, which amounted to Rp540.57 trillion, up 9% from the previous year.