IHSG Faces Continuous Pressure, OJK Reveals Impact on Insurance Industry Investments
The Financial Services Authority (OJK) assesses that the condition of the domestic stock market, as reflected by the movement of the Composite Stock Price Index (IHSG) at the beginning of 2026, indicates ongoing pressure and high volatility. This situation is seen as potentially affecting the performance of investments in the insurance industry, particularly in equity instruments.
The Executive Head of Insurance, Guarantee, and Pension Fund Supervision (KE PPDP), Ogi Prastomiyono, stated that in a fluctuating market condition, insurance companies tend to be more cautious in managing their investment portfolios.
“The pressure and volatility of the IHSG at the beginning of the year could potentially affect the investment performance of the insurance industry in equity instruments. In fluctuating market conditions, insurance companies generally make careful adjustments to their investment portfolios to maintain risk profiles and suitability with long-term obligations,” said Ogi, quoted from his written response on Monday (23/3/2026).
Adjustments to strategies are made to maintain a balance between the level of risk and long-term obligations that must be fulfilled.
In facing market turbulence, insurance companies generally conduct evaluations and adjustments to the composition of investments. This step is taken to ensure that the stability of investment performance is maintained even though the stock market is under pressure.
A cautious approach becomes key, especially given the characteristics of the insurance industry which has long-term obligations to policyholders.
Therefore, investment decisions not only consider potential returns but also risks that could affect the financial health of the company.
Stock Investment Allocation Reaches 17.51 Percent
Based on data for January 2026, the placement of commercial insurance industry investments in equity instruments was recorded at around 17.51 percent of total investments. This figure shows a slight decrease compared to the previous period.
“The value has slightly decreased in line with the dynamics of the domestic stock market and the industry’s cautious strategy in investment management,” he said.
The decrease aligns with the dynamics of the domestic stock market which remains turbulent as well as the industry’s more conservative strategy in managing investments.