Life Insurance Industry Investment Returns Reach Rp47.32 Trillion, Up 103.1% Throughout 2025
Jakarta — The Indonesian Life Insurance Association (AAJI) has recorded a significant 103.1% year-on-year increase in investment returns across the life insurance industry throughout 2025.
Albertus Wiroyo, Chairman of the AAJI Board of Management, stated that the positive investment performance has driven total revenue for the life insurance industry upwards to Rp238.71 trillion.
“By December last year, investment returns in the industry increased by 103.1% compared with 2024, reaching Rp47.32 trillion,” he said at an AAJI press conference in Jakarta on Friday, 13 March 2026.
The life insurance industry manages 88.5% of its assets in the form of investments, according to Harsya Wardhana Prasetyo, Head of Marketing and Communications at AAJI. Throughout 2025, total investment assets in the life insurance industry reached Rp590.54 trillion, representing a 9% year-on-year increase. Investment instruments that experienced significant growth include State Securities (SBN), which increased 20.9% to Rp248.25 trillion.
“This reflects the life insurance industry’s commitment to supporting national development financing, whilst placing funds in long-term investment instruments that are safe and stable to protect policyholders’ interests,” Harsya said.
The second-largest investment instrument is shares, with fund placements reaching Rp128.72 trillion. This represented a 4.3% year-on-year decline from Rp134.47 trillion. The life insurance industry also placed funds in deposit instruments worth Rp31.95 trillion, which declined 2.9% year-on-year, accounting for 5.4% of total investments.
Investment placements in other instruments included buildings and land, which declined 4.2% to Rp16.35 trillion, whilst direct investment placements grew 6.2% to Rp31.08 trillion. Other investment instruments increased 9.5% to Rp6.67 trillion.
Fund placements in life insurance companies’ investment management are conducted in accordance with Financial Services Authority (OJFSA) Regulation Number 26 of 2025 regarding Asset and Liability Management for Insurance and Reinsurance Companies. This regulation serves as the basis for companies to implement prudential principles, asset-liability matching, and measured portfolio diversification to maintain financial resilience and support stable investment performance across varying market dynamics.
“We encourage the public and policyholders not to overreact to short-term market dynamics, and to continue viewing life insurance as a financial protection instrument that provides certainty and peace of mind in the long term,” Harsya concluded.