OJK Develops Low-Risk Products to Encourage Insurance and Pension Funds to Invest Actively in the Capital Market

The Financial Services Authority (OJK), through its Executive Head of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, has stated that it is currently developing investment products in the capital market with low risk and fixed interest rates (guaranteed return) in collaboration with various stakeholders. According to him, instruments with guaranteed returns will assist insurance companies and pension funds (dapen) in managing risks in a measured manner. Ogi acknowledged that this step is intended to encourage insurance companies and dapen to expand their investments in the future, particularly in various capital market instruments. “We are discussing with various parties, including asset managers, to issue an investment product in the capital market that provides a guaranteed return for insurance, especially for dapen,” said Ogi in the SCBD area, Sudirman, South Jakarta, on Monday, 13 April 2026. “The aim is so that (the risk) can be identified and mitigated better,” he added. He further explained that this step by OJK coincides with the issuance of regulations on gold-based ETF instruments as an alternative investment for insurance companies and dapen in the capital market. “Thus, the investment allocation for pension funds and insurance can also enter the capital market because it has a fairly good alternative return,” said Ogi. He added that from a regulatory perspective, this year is a crucial period for the insurance and dapen sector. This is because OJK has set minimum equity requirements for insurance companies and mandated spin-offs for sharia business units. “Because we hope that the PPDP sector going forward can improve due to ongoing consolidation, capital improvements, risk management and governance, as well as international PSAK 117 practices,” he stated.