IHSG Plunges to 2021 Levels: What is the Impact on the Insurance Industry?
Jakarta, CNBC Indonesia — Insurance companies are among the institutional investors affected by the weakening of the Jakarta Composite Index (IHSG). Players in the industry are highlighting this.
The pressure on the capital market is also reflected in the investment performance of the life insurance industry in the first quarter of 2026. The investment results of the life insurance industry recorded a contraction of up to IDR 1.6 trillion in the first quarter of 2026.
Of the entire investment portfolio, equity instruments contributed approximately IDR 112.64 trillion, or a decrease of 5.9% year on year.
The Chairman of the Indonesian Insurance Council (DAI), Yulius Bhayangkara, said that he hopes the weakening of the IHSG is only temporary. According to him, the stock market still has the potential to recover as economic conditions and market sentiment improve.
However, Yulius emphasized that placing investments in the capital market is not the primary choice for the insurance industry due to its relatively high risk. He said that the investment management of insurance companies must still consider the company’s obligations or liabilities.
“We hope that the decline in the IHSG is only temporary. So we still hope for a rebound. Placing investments in the capital market is indeed not the primary choice given the relatively high risk,” said Yulius to CNBC Indonesia, Wednesday (3/6/2026).
He added that investment placement must be in line with the insurance company’s obligation to fulfill claim payments to customers (liability matching). According to Yulius, insurance companies are required to ensure sufficient liquidity to meet short-term and long-term obligations.
He acknowledged that stock investments can provide optimal returns when economic conditions are good. However, insurance companies must still implement appropriate risk management and carry it out in a disciplined manner to maintain the company’s financial health.
Meanwhile, President Director of Asuransi Astra, Maximiliaan Agastisianus, as one of the private players, said that the recent volatility in stock prices has not had a significant impact on the company’s investment portfolio. This is because of the characteristics of the general insurance business, which is more focused on fulfilling short-term obligations.
According to Maximiliaan, Asuransi Astra’s investment portfolio is more placed on money market instruments and bonds or fixed income compared to stocks. With this composition, the company’s exposure to stock market fluctuations is relatively very small.
“If it’s in stocks, it’s very minimal, so it’s not too affected,” said Max when met after the Asuransi Astra Media Conference, Wednesday (3/6/2026).
He added that for money market instruments and bonds, the company only follows the development of the prevailing yield or return rate in the market.
It is known that the IHSG has continued to be under pressure since the beginning of 2026. As of the close of trading on Wednesday (3/6/2026), the IHSG fell 4.11% or 254.36 points to 5,941.07.
The correction has brought the IHSG to its lowest level in the last five years. The last time the index closed lower than the current position was in May 2021, when the market was still in the recovery phase after the shock of the Covid-19 pandemic in 2020.
(mkh/mkh) Add as a preferred source on Google