Business · Markets · 10 hrs ago
Insurers urge MSCI to keep Indonesia’s emerging-market status
Indonesia’s life insurance association is urging MSCI to keep the country’s emerging-market status.
MSCI is consulting on a proposal to classify Indonesia at the lowest level, as a standalone market.
The association says a downgrade could push down Jakarta’s main stock index, affecting investment portfolios across several industries.
Insurers invest mostly in bonds, but stocks made up about 15 percent of their investments in the second quarter of 2026.
That exposure means a market fall could also affect insurers, though the industry says life insurance is built for the long term.
Indonesia’s Financial Services Authority has urged insurance companies to tell customers not to panic.
MSCI’s consultation is still under way, and the association hopes the proposal will not go ahead.
The Indonesian Life Insurance Association urged MSCI to keep Indonesia classified as an emerging market.
Association chair Albertus Wiroyo said a downgrade to standalone-market status could cause the Jakarta Composite Index to fall and affect investment portfolios, including those of insurers.
MSCI is holding public consultations on the proposed reclassification.
Wiroyo said about 15 percent of insurance investments were in stocks in the second quarter of 2026.
He said the life insurance industry was focused on the long term and could recover from difficult conditions.
- Who
- The Indonesian Life Insurance Association, represented by chair Albertus Wiroyo, urged MSCI to maintain Indonesia's status.
- What
- MSCI is consulting on a proposal to reclassify Indonesia as a standalone market. Insurers say a market fall could affect their investment portfolios.
- When
- October 29, 2026. Wiroyo made his statement on Thursday.
- Where
- Indonesia.
- Why
- Insurers are concerned that a downgrade could cause the Jakarta Composite Index to fall and affect investment portfolios.
Indonesian Life Insurance Association
MSCI
Market classification
Indonesian Life Insurance Association
AAJI hopes MSCI will maintain Indonesia's emerging-market status.
MSCI
MSCI is consulting on a proposal to classify Indonesia as a standalone market.
Potential effects
Indonesian Life Insurance Association
AAJI warns the proposal could contribute to a JCI fall and affect investment portfolios.
MSCI
MSCI's reasons for the proposal are not stated in the article.
This story does not have a timeline yet.
- Association
- Indonesian Life Insurance Association (AAJI)
- Association chair
- Albertus Wiroyo
- Proposed classification
- Standalone market
- Stock investments
- About 15 percent of insurance investments in the second quarter of 2026
- Index at risk
- Jakarta Composite Index (JCI)
What people are saying
We hope and pray that what MSCI proposed does not happen
About 15 percent in the second quarter of 2026
So if we look back and learn from experience, we can bounce back from any bad situation. In fact, it's usually better than before the crisis