TEMPO.CO, Jakarta - The Financial Services Authority (OJK) explained that the increase in Bank Indonesia's benchmark interest rate, known as the BI Rate, to 5.75 percent could impact investment in the insurance industry. OJK Chief Executive of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, elaborated on the influence of BI Rate movements on the industry's portfolio management.
"The increase in BI Rate can fundamentally affect the investment strategy of the insurance industry, particularly in fixed income instruments and the money market," Ogi Prastomiyono said in a written response quoted on Wednesday, June 24, 2026.
However, Ogi explained that the impact of the BI Rate increase on the insurance industry needs to be comprehensively assessed because, besides being influenced by interest rates, investment performance is also affected by financial market conditions, asset price movements, and the characteristics of each company's portfolio.
Nevertheless, according to Ogi, despite the rise in BI Rate, the stability of government bond yields helps maintain the insurance industry's investment performance. On the other hand, the stock market continues to face volatility due to various global and domestic factors.
In short, each company is responsible for making investment placement decisions according to its liability profile, product characteristics, and risk management. OJK continues to supervise to ensure that companies implement good investment governance, comply with investment placement limits, and prioritize prudence to maintain financial resilience and the ability to meet obligations to policyholders.
According to OJK data, the investment performance of the general insurance industry will remain positive until April 2026. The investment yield level in conventional general insurance increased from 0.27 percent in March 2026 to 0.55 percent.
Meanwhile, Sharia general insurance recorded an investment yield of 0.44 percent, an increase from 0.36 percent in the previous month. "This development shows that the industry is still able to maintain its investment performance amidst dynamic market conditions," said Ogi.
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