Sukuk Remains Prime Investment Choice for Islamic Insurance Industry

Bisnis.com, JAKARTA — The Association of Islamic Insurance Indonesia (AASI) states that sukuk remains the primary investment choice for Islamic insurance companies in deploying their funds.

General Chairman of AASI Fauzi Arfan stated that particularly National Sharia Securities (SBSN) or corporate sukuk with strong fundamentals and relatively stable risk profiles.

He noted this is reflected in the industry’s investment trends over recent years, with SBSN allocations rising significantly from approximately Rp6.26 trillion in Q1 2022 to around Rp13.16 trillion in Q1 2026.

“This indicates Islamic insurance companies are increasingly strengthening their investments in instruments that can maintain portfolio stability amid global market dynamics,” he told Bisnis, quoted on Monday (1/6/2026).

For instance, in the Islamic life insurance sector, demand for sukuk with maturities up to 50 years is becoming increasingly relevant as long-term protection products like endowment and whole life policies expand.

“With such long-term instruments available, companies will optimally implement Asset Liability Matching (ALM) principles, ensuring a better balance between obligations to policyholders and investment assets,” Fauzi said.

Furthermore, the man who also serves as President Director & CEO of Manulife Syariah Indonesia noted that current Islamic investment instrument options are sufficiently diverse. The variety of Islamic investment instruments continues to expand, offering better alternatives for the industry.

“However, to support the growing Islamic insurance industry post-spin off, deeper market development is still needed, both in terms of product variety, tenor options, and strengthening secondary market liquidity,” Fauzi added.

Thus, he continued, the Islamic insurance industry will have improved flexibility in managing investment portfolios optimally, prudently, and in line with long-term business needs.