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Gold Interest Rises in Insurance Industry, Great Eastern (GEGI) Responds
PT Great Eastern General Insurance Indonesia (GEGI) reports a growing interest in gold as an investment instrument amid ongoing global economic uncertainty. However, the allocation of gold within the insurance industry’s investment portfolio remains relatively small.
According to GEGI Marketing Director, Linggawati Tok, gold is increasingly being considered as an alternative for portfolio diversification and a hedge against inflation. Despite this trend, she emphasized that its use must remain selective and carefully measured.
“Gold does not generate regular income and tends to have relatively high price volatility. Therefore, its utilization must be done selectively and in a well-calculated manner,” Linggawati stated on Tuesday (March 31, 2026).
Data from Indonesia’s Financial Services Authority (OJK) shows that as of January 2026, total investment in gold within the insurance sector reached only around Rp3.4 billion, equivalent to just 0.0005% of total industry investments.
Meanwhile, insurance companies continue to rely heavily on fixed-income instruments such as government bonds (SBN), corporate bonds, and deposits, which are considered more stable and better aligned with policyholder obligations.
Nevertheless, GEGI believes that the potential for increased gold investment remains open in the future, particularly as part of a long-term diversification strategy.
“Looking ahead, the opportunity is still there. However, it will be implemented gradually while adhering to prudential principles, risk management, and regulatory requirements,” she concluded.