Rise in SRBI Yields Becomes New Magnet for Insurance Investments - Finance
Bank Indonesia (BI) is taking proactive steps to safeguard the rupiah’s exchange rate from geopolitical uncertainties by adjusting market interest rate structures through an increase in yields on Sekuritas Rupiah Bank Indonesia (SRBI) instruments.
Insurance observer Irvan Rahardjo stated that the rise in SRBI yields could significantly impact investment placements by the insurance industry in these instruments. He noted that this condition makes SRBI increasingly attractive to non-bank investors, including the insurance sector.
Therefore, Irvan believes the insurance industry has strong potential to increase its allocation of investments in SRBI instruments in 2026.
“Particularly driven by the appeal of higher yields, the security of the instrument, and liquidity management needs,” he told Kontan on Sunday (10/5).
“SRBI is a short-term debt instrument issued by Bank Indonesia, making it one of the safest investment options with very low default risk,” he added.
Furthermore, Irvan said SRBI offers competitive yields. He explained that SRBI provides relatively high returns, with an average portfolio accumulation around 7%. This makes it attractive compared to other money market instruments or similar-tenor bonds.
As a money market instrument, he noted that SRBI is easily tradable, providing flexibility for insurance companies to manage cash flow and short-term liquidity needs.
Irvan mentioned that SRBI can serve as an effective alternative investment instrument for the insurance industry to place funds, besides Government Securities (SBN) or deposits. With attractive yields, SRBI also helps the insurance industry boost investment income amid market fluctuations.
From the perspective of insurance companies, PT Sun Life Financial Indonesia (Sun Life Indonesia) stated that the yield increase could positively impact investments in SRBI.
“The yield increase also has a positive impact, as our yields can be better, thereby increasing income,” said President Director of Sun Life Indonesia, Albertus Wiroyo, when met in North Jakarta on Friday (8/5).
Albertus also noted that Sun Life’s investment placements always prioritise matching with liabilities in terms of duration and assumed yields. He explained that so far, Sun Life’s largest investment allocation remains in bonds.
Based on the company’s financial report on its official website, Sun Life recorded investments worth Rp 11.34 trillion as of March 2026. Bonds dominate the company’s investment portfolio with a value of Rp 5.60 trillion as of March 2026, while placements in securities issued by BI amount to Rp 19.06 billion.