OJK signals revision of PPDP growth target for 2026

The Financial Services Authority (OJK) has signalled that it will revise the growth target for the insurance, guarantee, and pension fund (PPDP) sector in 2026 following various challenges, including investment portfolio dynamics reflected in industry performance up to mid-year.

Ogi Prastomiyono, Member of the Board of Commissioners and Chief Executive of PPDP Supervision at OJK, said total PPDP assets stood at Rp2,964.56 trillion, growing marginally by 0.37 per cent year-to-date (ytd) and 4.48 per cent year-on-year (yoy) as of July 2026.

Meanwhile, PPDP investment value contracted by 0.15 per cent ytd but grew 4.72 per cent yoy to Rp2,276 trillion.

“One of the factors behind the current condition is the decline in investment value. In terms of equities, there has certainly been a decline,” Ogi said in Lombok, West Nusa Tenggara, on Friday.

He explained that the current decline in investment value remains potential in nature and has not yet become a realised loss. Losses would only materialise if asset owners were forced to sell their investments to meet liquidity needs.

This condition warrants attention should market pressures persist over an extended period. If investment values do not recover, falling prices could further erode asset values and portfolios.

In addition to investment portfolio factors, Ogi said the current economic climate, with pressure on purchasing power, has made purchasing insurance policies and pension funds less of a priority for the public.

According to data presented by Ogi, the number of accounts in the PPDP industry declined by 13.9 per cent year-on-year to 518.6 million accounts as of July 2026.

“Insurance or pension programmes have become a secondary priority. That is what we have also found,” he said.

OJK is currently still projecting insurance industry growth at around 6-8 per cent, while pension funds are projected at 9-11 per cent, as conveyed at the Annual Financial Services Industry Meeting.

Given the current challenges, Ogi said there is a possibility that OJK will revise its growth projections for the PPDP industry.

“Under these conditions, we may revise the projections. The situation is indeed like this, but we hope it remains positive,” he said.