BI Rate Rises, MSIG Indonesia Rebalances Portfolio: Government Bonds Top, Deposits Surge

JAKARTA. Bank Indonesia’s benchmark interest rate (BI Rate) rose by 50 basis points to 5.25%. In response, general insurance company PT Asuransi MSIG Indonesia (MSIG Indonesia) said the rate hike could positively impact its investment returns.

“Specifically, through higher deposit rates and bond yields offering more attractive returns for new fund placements,” said MSIG Indonesia President Director Tomosuke Tsuruoka to Kontan on Monday, June 1.

Tsuruoka added that the situation also presents opportunities for the company to optimise cash management and short-to-medium-term fixed-income investments with more competitive yields. However, he noted the company will maintain prudence and risk profiles in its investments.

He stated MSIG Indonesia must balance fund availability for business operations with optimising placements in instruments offering competitive returns within measured risk profiles.

In practice, Tsuruoka said the company may adjust or switch between instruments such as deposits, bonds, and money market funds, considering market conditions and available yield opportunities.

“Such steps will be taken selectively to ensure the portfolio remains efficient, flexible, and aligned with the company’s long-term financial strategy and risk management,” he added.

According to the company’s financial report on its official website, MSIG Indonesia recorded total investments of Rp 1.86 trillion as of April 2026. The largest allocation was in Government Securities (SBN) at Rp 1.14 trillion, or 61.29%, followed by term deposits at Rp 615.73 billion, or 32.80%.