Kathmandu. Budi Herwan, president of the Indonesian General Insurance Association, said he expects the government to increase it from 8 percent to 20 percent of its total investment instead of making it mandatory for non-life insurance companies to invest in the stock market.
The chairman told the news agency Antara that the plan to increase the share of the investment in the shares should not be compelled. “Flexible alternatives must be put in place and their implementation should await further technical regulations from regulators to strike a balance between financial market developments and the protection of policyholder interests,” he said.
On January 30, Minister for the Coordination of Economic Affairs Airlanga Hartarto and Finance Minister Purbiya Yudhi Sadeva unveiled the plan to raise the border. On January 28, Morgan Stanley Capital International announced that it would temporarily halt weights of major Indonesian stocks. Morgan Stanley Capital said its main concerns were the lack of transparency in share ownership and the risk of coordinated trading. This led to a decline in the Indonesian Stock Exchange Composite Index.
Initially, the implementation of the new investment limit will focus on large-cap stocks included in the LQ45 index. It tracks 45 of the most liquid and high-quality stocks on the Indonesian Stock Exchange.
“Indonesia is opening up opportunities for insurance companies and pension funds to invest in good stocks,” Erlanga told the Indonesia Economic Summit in Jakarta. –Agency
