Indonesia’s insurance industry held total assets of Rp1,194.84 trillion as of September, down 0.71 percent since the start of the year, the Financial Services Authority (OJK) said at a press conference on Thursday. Assets rose 0.98 percent compared with September a year earlier. OJK attributed the year-to-date decline mainly to lower investment values in stocks amid a sharp correction on the Indonesian stock exchange.
Capital ratios hold up
Ogi Prastomiyono, Head of Executive of Insurance, Guarantee and Pension Fund Supervision at OJK, said the changes were influenced by the dynamics of investment assets, especially in stock instruments. Life insurers reported a Risk Based Capital ratio of 471.95 percent, while general insurers and reinsurers posted 331.84 percent, both well above the 120 percent minimum requirement.
As of 26 October, nine insurance and reinsurance companies and eight pension funds remained under special supervision. Among insurance and reinsurance firms, 121 of 151 companies, or 83.45 percent, met the first-stage minimum equity requirement for 2026. For guarantee companies, 19 of 24, or 79.17 percent, met the threshold, and 188 of 220 supporting companies, or 85.45 percent, did so. OJK also said 15 unlicensed insurance and reinsurance brokers were under investigation, with four cases referred to its investigators.
Pension funds grow, stocks slide
Pension fund assets reached Rp1,721.91 trillion as of September 2026, up 2.53 percent year to date and 6.11 percent year on year, driven by higher investment in government securities. Guarantee company assets fell to Rp47.26 trillion, down 2.03 percent year on year and 0.53 percent year to date.
The Jakarta Composite Index fell below the 5,000-point level, more than 40 percent below where it started the year and its lowest in six years. The decline followed credibility concerns tied to signals from Morgan Stanley Capital International (MSCI) of a possible downgrade of Indonesia from Emerging Market to Standalone Market status.
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Source: OJK
