IHSG Performance Continues to Decline, Pressuring Sharia Insurance Investments by IDR 121.84 Billion
REPUBLIKA.CO.ID, JAKARTA – The national insurance industry is facing pressure at the beginning of 2026 as weakening financial markets impact investment performance, particularly in the Sharia insurance segment. On the other hand, claim performance in the credit business line shows improvement compared to the previous month.
Head of the Supervision Department for Insurance, Guarantee and Pension Funds at the OJK (Financial Services Authority), Ogi Prastomiyono, said that based on data as of March 2026, Sharia insurance investment returns experienced a significant contraction.
“Based on data as of March 2026, Sharia insurance investment returns recorded a contraction to negative IDR 121.84 billion, after previously being in a positive position of IDR 545.24 billion,” said Ogi in a written response to the April 2026 Meeting of the OJK Board of Commissioners.
According to him, this development is mainly influenced by changes in market conditions, including a weakening of the Composite Stock Price Index (IHSG) by 14.42 percent month-to-month. This condition has an impact on the performance of equity-based investment instruments in the portfolio of Sharia life insurance.
Ogi explained that pressure on the stock market caused the value of investments placed in equity instruments to also erode. This then affected the overall performance of the Sharia insurance industry’s investment returns in the first quarter of this year.
To maintain stability and improve future investment performance, the OJK has asked the industry to strengthen its investment management strategies and risk mitigation.
“The industry needs to continue strengthening portfolio diversification on more stable instruments, optimizing asset liability management (ALM), strengthening risk management through stress testing, and improving governance and internal supervision in investment decision-making,” he said.
Meanwhile, in the credit business line, the combined general insurance and reinsurance industries recorded an improvement in the claim ratio. Based on data as of March 2026, the claim ratio for the credit business line in the combined general insurance and reinsurance industries, both conventional and Sharia, was recorded at 97 percent.
This figure improved compared to the position in February 2026, which reached 108.40 percent. Thus, month-to-month, the claim ratio did not increase but rather decreased, indicating an improvement in claim performance during that period.
This improvement in the claim ratio is considered a positive signal for the industry amid the challenges of financial market volatility and investment return pressures that still plague the national insurance sector.