Indonesia’s insurance industry association said its members may invest in stocks to optimise returns, but must follow prudential principles. Yulius Bhayangkara, chairman of Dewan Asuransi Indonesia (DAI), made the remarks at the Hari Asuransi 2026 press conference on 20 October 2026. He spoke a day after the Indonesia Stock Exchange (BEI) asked domestic institutional investors, including pension funds and insurers, to become more active in the market.
Exchange calls for domestic buying
The call followed a steep fall in the Jakarta Composite Index (IHSG). The index dropped 11.57 percent in a single day on Friday, 16 October 2026. Jeffrey Hendrik, president director of BEI, urged domestic institutions to participate more actively in the capital market. He said the market’s fundamentals were strong and would offer good prospects for investors.
The sell-off came after Morgan Stanley Capital International (MSCI) opened a consultation on reclassifying Indonesia from Emerging Market to Standalone Market status. The consultation began on 15 October 2026 and runs until 30 April 2027. MSCI expects to announce its final decision by 30 June 2027.
Insurers warned on asset-liability matching
Bhayangkara said insurers could buy shares, but he urged caution. The duty of insurance, he said, is to ensure asset-liability management. He warned against raising equity holdings simply because of a government proposal. Once a claim arrives, he said, insurers must have the money to pay it.
He said hedging could help manage volatility, but each insurer must decide for itself.
Related: Three Indonesian stocks hit limit down as IHSG falls 11% · Foreign investors sell Rp1.97 trillion as IHSG gains 4.16%
Source: Dewan Asuransi Indonesia (DAI)
