The insurance industry in Indonesia is showing positive progress in terms of investment
Jakarta (ANTARA) - The total assets of the insurance industry reached Rp1,637 trillion in March 2022, an increase of 12.9 percent compared to the corresponding period of the previous year, Bank Indonesia (BI) has reported.

These assets include investments of Rp1,345 trillion, or 82 percent of the total assets.

"The insurance industry in Indonesia is showing positive progress in terms of investment," senior deputy governor of Bank Indonesia, Destry Damayanti, said at the Indonesian Financial Group International (IFG) Conference 2022 here on Tuesday.

Pension funds also showed rapid progress by recording total net assets of Rp329 trillion, or a growth of around 6 percent (year-on-year), she said. The assets consisted of Rp321 trillion in investments, accounting for 27.5 percent of all assets owned by pension funds.

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Therefore, Damayanti said that the development of institutional investors, such as insurance and pension funds, is very important to deepen the Indonesian financial market.

"Investors in insurance and pension funds have great potential for long-term savings, which are very suitable for long-term investments such as infrastructure financing," she added.

Pension funds and insurance allow the economy to manage risk better.

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Currently, Indonesia's domestic financial market is still relatively shallow, as indicated by the limited volume of transactions, instruments, and market players.

To support Indonesia as a developing country, deep financial markets are needed to provide rupiah stability as a fundamental for sustainable development and to mitigate systemic risks, Damayanti emphasized.

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Translator: Agatha O, Azis Kurmala
Editor: Fardah Assegaf
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