JAKARTA – Insurance companies in Indonesia have collectively reduced their investment portions in the stock market, opting for bonds and Indonesian Government Securities (SBN) as alternatives.

The total value of insurance investments in the stock market was recorded at IDR 199.31 trillion as of December 2024, according to data from the Financial Services Authority (OJK) processed by IDNFinancials.com. This figure represents a 2.18% decline from November 2024, when it reached IDR 203.76 trillion.

The investment portion from conventional life insurance, which contributed 63.97% of total insurance company investments in the stock market, fell by 1.61% to IDR 127.5 trillion.

Meanwhile, investment allocation in the stock market by general insurance companies decreased by 4.63% in December 2024, social insurance BPJS fell by 3.08%, and non-BPJS social insurance dropped by 3.80%.

SBN remained the preferred investment instrument for life insurance companies, with an allocation of IDR 196.17 trillion. This represented 37.98% of the total life insurance investment funds in December 2024, which amounted to IDR 516.53 trillion.

During this period, general insurance companies placed most of their investments in SBN RI, with an allocation of IDR 41.7 trillion, or 34.56% of total investments. Reinsurance companies also relied on SBN RI as their choice, with an allocation of IDR 9.05 trillion, equivalent to 44.34% of total investments.

Additionally, non-BPJS insurance placed the majority of its investments in SBN RI, with an allocation of IDR 61.87 trillion, or 50.45%. BPJS insurance also favoured SBN RI, allocating IDR 562.6 trillion, or 67.39% of its total investment allocation. (KR/ZH)