Sun Life Indonesia Maintains Conservative Investment Strategy Amid Market Recovery

Focus on Fixed Income Securities

Sun Life Financial Indonesia has chosen to maintain its conservative investment approach by focusing on government bonds (SBN) and high-quality corporate bonds rather than increasing its equity holdings. President Director Albertus Wiroyo explained that this strategy is part of the company's asset-liability management (ALM) and risk management framework.

Rationale Behind the Investment Strategy

The decision is driven by the company's liability structure, which is characterized by long-term and relatively certain obligations due to its dominant traditional insurance products. As such, the company finds fixed income securities, particularly SBN and quality corporate bonds, to be the most suitable asset class. Wiroyo emphasized that this strategy is not driven by concerns about the capital market but rather by the need to match assets with liabilities effectively.

Market Context and Implications

Despite the recent recovery in the stock market, Sun Life Indonesia remains committed to its current investment strategy. The company's approach reflects a cautious stance that prioritizes stability and predictability in its investment portfolio. This strategy is particularly relevant in the context of Indonesia's insurance industry, where long-term financial planning and risk management are crucial.