The Indonesian insurance industry is at a crucial point of change. New regulations from the Financial Services Authority (OJK), the massive consolidation of state-owned insurance companies, and global dynamics such as international trade conflicts are creating both challenges and opportunities for all industry players. From legal cases to digital innovation, from mandatory Medical Council policies to inspiring stories of MSMEs surviving thanks to insurance protection—all illustrate the broad and dynamic nature of the national insurance industry today. Here’s a summary.7 of the most updated and comprehensive insurance news in IndonesiamandatoryYou read on to understand the direction and future of this sector.
The Rp2.2 Billion Insurance Scandal Exposed! Four PT Persero Batam Officials Named Suspects
The Batam District Attorney’s Office (Kejari) has officially named four suspects in the alleged corruption case of irregularities in the insurance coverage of assets of PT Pengusahaan Daerah Industri Pulau Batam (PT Persero Batam) involving PT Berdikari Insurance Batam Branch during the 2012–2021 period.
As a result of this fraudulent practice, the state is estimated to have lost up to IDR 2.2 billion.
“Based on the results of the investigation and the evidence we obtained, four people have been named as suspects,” said the Head of the Batam District Attorney’s Office, I Wayan Wiradarma, Thursday (16/10/2025).
The four suspects have the initials HO (GM Accounting and Finance 2013–2020), TA (Acting President Director 2015–2018), DU (President Director 2018–2020), and BU (Insurance Functional 2001–2013).
Prior to this determination, investigators had examined 15 witnesses and two experts to gather evidence to confirm the existence of a criminal act of corruption.
“Investigators have four valid pieces of evidence in the form of witness statements, expert testimony, letters, and clues that indicate the existence of unlawful acts that benefit certain parties and harm state finances,” Wayan explained.
This case is a development of a previous case handled by the Riau Islands High Prosecutor’s Office, involving convict Sulfika and defendant Alwi M. Kubat. The trial revealed new facts pointing to the involvement of several other parties.
For almost a decade, the process of closing the insurance of PT Persero Batam’s assets was apparently carried out without a legitimate auction mechanism or direct appointment, but instead directly appointing PT Berdikari Insurance, Batam Branch, on the grounds of “synergy between state-owned enterprises”.
“The determination of the insured value only refers to online market prices without involving independent appraisals or checking the condition of the assets in the field,” said Wayan.
Furthermore, investigators found that the premium amount was also determined unilaterally by PT Berdikari Insurance and simply approved by the board of directors without negotiation.
Another surprising finding was the deduction of acquisition fees or commissions of around 15% of the premium value, which was allegedly used for operational costs, marketing, and entertainment activities such as banquets and golf games.
“Premium funds were also paid without official documents such as an Insurance Closure Application Letter (SPPA),” said Wayan.
During the 2012–2021 period, total insurance premium payments of PT Persero Batam’s assets to PT Berdikari Insurance reached IDR 7.12 billion, while the BPKP audit results recorded a state loss of IDR 2.22 billion.
“Based on the BPKP audit, the total state loss reached Rp2,223,944,132,” Wayan emphasized.
For the purposes of the investigation, three of the four suspects have been officially detained: HO, BU, and DU. Meanwhile, suspect TA has not yet responded to investigators’ summons, citing other activities.
“We have sent TA a repeat summons to appear on Tuesday (October 20, 2025). If he continues to be absent without a valid reason, we will place him on the wanted list,” he concluded.
Only Three Left! Here’s the Current State of State-Owned Insurance Companies, from Jasa Raharja’s Profits to IFG Life’s Losses!
The Daya Anagata Nusantara (Danantara) Investment Management Agency (BPI) is preparing major steps to consolidate the state-owned insurance sector. The plan is to reduce the number of state-owned insurance companies (SOEs), leaving only three in the future.
These efficiency measures are being taken in line with the government’s efforts to strengthen the financial structure and competitiveness of the national insurance industry. Interestingly, the latest financial reports show mixed results for these three state-owned insurance companies, with some posting profit increases while others are still experiencing losses.
The following is a summary of the performance of Jasa Raharja, Jasindo, and IFG Life through the third quarter of 2025:
- PT Jasa Raharja – Profits Soar, Solvency Increasingly Strong
PT Jasa Raharja successfully recorded very positive financial performance growth until September 2025. Net profit after tax jumped sharply to Rp 1.20 trillion, a significant increase from Rp 871.31 billion in the same period the previous year.
This increase was primarily supported by a surge in premium income, which reached Rp 4.07 trillion, up from Rp 3.47 trillion in September 2024. Meanwhile, net premiums also increased to Rp 3.97 trillion from Rp 3.35 trillion previously.
Underwriting revenue recorded strong growth to Rp 3.78 trillion, while underwriting expenses actually decreased slightly to Rp 2.67 trillion. Financially, Jasa Raharja’s total assets rose to Rp 17.08 trillion, while debt remained stable at Rp 993.43 billion.
Interestingly, Jasa Raharja’s solvency ratio (RBC) reached 828.12%, indicating a very healthy financial position and far above the minimum limit set by the regulator.
- PT Asuransi Jasa Indonesia (Jasindo) – Profit Increases Fivefold, Claims Decline Sharply
After facing pressure in the previous year, Jasindo managed to recover by posting a net profit of Rp 117.04 billion by August 2025, a nearly sixfold increase from Rp 20.22 billion in August 2024.
This growth was driven by an increase in gross premiums to Rp 2.71 trillion and net premiums to Rp 1.43 trillion. Meanwhile, net claims decreased significantly to Rp 792.96 billion from Rp 823.54 billion, directly contributing to the profit increase.
Jasindo also managed to reduce its underwriting expenses to Rp 815.91 billion and reduce its debt to Rp 2.88 trillion from Rp 3.03 trillion. As of August 2025, the company’s assets reached Rp 15.08 trillion, with a solvency ratio of 162.58%, indicating a relatively solid financial position.
- PT Asuransi Jiwa IFG (IFG Life) – Back in the red, claims increase dramatically
In contrast to its two peers, IFG Life actually recorded negative performance during the same period. According to its September 2025 financial report, the company recorded a net loss of Rp 119.28 billion, a reversal from a profit of Rp 153.44 billion the previous year.
IFG Life’s total revenue actually increased to Rp 5.30 trillion, mostly from premiums of Rp 5.16 trillion and reinsurance premiums of Rp 1.18 trillion, bringing the net premium to Rp 3.74 trillion.
However, a significant increase in claims and benefits expenses to Rp 4.35 trillion (up from Rp 3.88 trillion) and operating expenses that increased to Rp 898.81 billion, drastically reduced the company’s profits.
Despite this, comprehensive income remained at Rp 584.71 billion, with comprehensive profit at Rp 465.42 billion. IFG Life also saw debt increase to Rp 1.93 trillion, while assets decreased slightly to Rp 33.91 trillion. The solvency ratio (RBC) of 214.97% still indicates a healthy level of capital.
Towards Consolidation: The Future of State-Owned Insurance Companies
Danantara’s move to reduce the number of state-owned insurance companies to three is seen as an effort to create a more efficient and competitive industrial structure.
With the financial performance of these three major players differing significantly, consolidation is expected to strengthen capital, reduce business overlap, and improve governance and profitability in the state-owned insurance sector.
However, the success of this step will certainly depend heavily on how the government and the IFG holding company manage the restructuring process and ensure the stability of the national insurance industry amidst global economic challenges.
Regarding the IncidentIslamic Boarding School Collapses, Indef Economists Urge Government to Mandate Building and Life Insurance for Educational Institutions!
The collapse of an Islamic boarding school building in Sidoarjo, East Java, has once again opened the eyes of many parties to the importance of asset protection and safety of lives in educational institutions.
The Executive Director of the Institute for Development of Economics and Finance (Indef), Esther Sri Astuti, believes the government needs to create mandatory building and life insurance regulations for Islamic boarding schools and other schools in Indonesia.
“Ideally, there should be one. Not just a building evaluation, but a government-mandated asset and life protection system,” Esther said when contacted.JPNN.comrecently.
Building Insurance Has Previously Only Been Mandatory If You Use Loan Funds
Esther explained that current field practice shows that building insurance obligations usually only arise if construction is carried out using loan funds or bank credit.
In fact, according to him, every important building such as a school or Islamic boarding school, should have insurance protection regardless of the source of funds for its construction.
“In Indonesia, people are only required to insure buildings if they borrow money. Yet, all important assets and the lives within them should be protected,” he stressed.
The Government is Asked to Become a Regulator for the Protection of Educational Assets
In Esther’s view, the government has a crucial role to play in designing robust systems and regulations to mitigate the risks of educational buildings. The goal is to prevent tragedies like the Islamic boarding school collapse from happening again.
“Risk mitigation must be designed so that those in Islamic boarding schools are protected, and even if a disaster occurs, they can rebuild,” he explained.
With a clear system and regulations, Esther said, the government would not need to continuously use state budget funds every time a similar incident occurs.
Insurance Can Be a Budget-Saving Solution
Esther also emphasized that Islamic boarding schools are private entities, so the responsibility for developing and protecting their assets should not be entirely borne by the state.
“State funds should be used for the public interest, not to cover the losses of private institutions,” he said firmly.
With the obligation of building and life insurance for educational institutions, the burden on the state budget can be reduced, and Islamic boarding schools have an independent financial protection mechanism in the event of a disaster.
Conclusion: It’s Time for Islamic Boarding Schools to Have Financial Protection!
The tragedy of the collapse of the Islamic boarding school in Sidoarjo is a stark reminder that asset protection and safety of lives in educational institutions are still weak.
Indef’s recommendations emphasize that insurance is not merely a formality, but an important risk mitigation instrument that must be included in national policy, especially for Islamic boarding school-based educational institutions.
Once Nearly Bankrupt Due to a Fire, Now Earning Rp5 Billion in Revenue! Here’s the Secret of a Bandung Garment Business Owner Who Survived Thanks to Insurance
David’s (42) home-based garment business in Bandung has now become a successful MSME with annual turnover exceeding Rp 5 billion. Starting in a small garage in 2012, this screen printing and school uniform business has now expanded beyond Java and into Asia.
“Thank God, this business has created many jobs. Many families around here depend on our garment factory for their income,” David said proudly.
However, despite his success, David once experienced a dark period. He nearly lost everything when his garment factory caught fire due to an electrical short circuit. Hundreds of millions of rupiah were lost overnight, although there were no fatalities.
“From there, I realized that no matter how small a business is, it always carries risks. And the only way to recover is through insurance,” he recalled.
From Fire to Awareness: The Importance of Insurance for MSMEs
After that incident, David decided to insure his business through Askrindo (Indonesian Credit Insurance), a state-owned enterprise known for providing protection for micro and small businesses. He also protects himself and his employees with life and health insurance.
That decision not only saved his business, but also gave him a sense of security to continue innovating and growing.
“I used to think insurance was only for large companies, but now I understand that it’s actually MSMEs that need that protection the most,” he said.
Shocking Fact: 53% of MSMEs Don’t Have Insurance
David’s story is just one of millions of MSMEs still vulnerable to business risks. According to data from the Financial Services Authority (OJK), Indonesia’s insurance literacy rate is only 45%, and only 2.72% of the population owns insurance products.
Even more ironic, of the 60 million MSMEs, around 53% have no insurance coverage at all. Yet, the MSME sector contributes 61% to the national Gross Domestic Product (GDP).
Without adequate risk mitigation, one small disaster can cripple a family’s business and economy.
Askrindo Encourages MSMEs to Become Insurance Literate Through Affordable and Convenient Products
Seeing this situation, Askrindo, a member of the Indonesia Financial Group (IFG), continues to promote insurance education and literacy throughout Indonesia.
Askrindo’s President Director, M. Fankar Umran, emphasized the importance of MSMEs understanding the benefits of insurance.
“One of the main functions of insurance is to protect business assets from unexpected events such as fire, theft, or natural disasters,” he said.
To reach small business owners, Askrindo offers a micro product called “My Business Insurance” with a premium of only IDR 40,000 per year, but provides coverage of up to IDR 5 million for fixed businesses and IDR 2.5 million for mobile businesses.
“Askrindo wants to ensure that MSMEs can remain viable even when faced with disaster. Small premiums, big benefits,” explained Budhi Novianto, Askrindo’s Business Director.
In addition, Askrindo also provides Rumahku Micro Insurance and Maritime Micro Insurance for fishermen, as a form of commitment to protecting small communities in various sectors.
IFG Builds a National Digital Protection Ecosystem
IFG Corporate Secretary, Denny S. Adji, said that literacy and digitalization are two important keys to restoring public trust in the insurance industry.
“We don’t just talk theory. We create real-life simulations, such as how insurance can save a shop from disaster, or how life insurance can secure a family’s future,” he explained.
Through the IFG holding company, which includes Askrindo, Jasindo, Jasa Raharja, IFG Life, and Jasa Raharja Putera, the public can now access affordable insurance products that are relevant to their daily needs.
One of them is LifeSAVER from IFG Life with premiums starting from IDR 25,000 per month, and Third Party Liability (TPL) from Jasa Raharja Putera which protects drivers from third-party claims due to accidents.
As part of its digital transformation, IFG also launched the “One by IFG” application, a financial super app that integrates life insurance, general insurance, and online health consultation services.
As of October 2025, the application was used by 300,000 active users, a sharp jump from 22,000 users at the end of 2024.
“Digitalization isn’t just about convenience, but about delivering a humane and personalized experience, especially for underserved segments,” Denny said.
Conclusion: Insurance, Not a Burden but a Real Protection for MSMEs
David’s story proves that insurance isn’t just for large corporations. For MSMEs, it’s a survival tool amidst economic uncertainty and business risks.
With the right protection, businesses can not only survive disasters but also continue to grow, innovate, and benefit many families.
As David said, “If I used to be afraid of losing money because I paid premiums, now I know… it’s because of insurance that I can survive.”
New OJK Rule! All Health Insurance Companies Must Have Their Own Medical Board, Impact on the Industry
The obligation to establish a Medical Advisory Board (MAB) in every insurance company offering health insurance products is currently being finalized through SEOJK Number 7/2025, which will later be further regulated in a new POJK.
Deswa Integra Group CEO Dedi Kristianto believes that while this policy has the potential to increase operational costs, the MAB will actually offer significant long-term benefits. He believes that MAB will help insurance companies, including small ones, improve the quality of medical services and strengthen risk mitigation in managing health claims.
“Besides being required by the Financial Services Authority (OJK), MAB is also an internal company requirement. Its function is to bridge the gap between insurance companies and hospitals or healthcare providers,” explained Dedi after the launch of MAB by Deswa in Jakarta on Thursday (October 16, 2025).
Dedi added that OJK regulations don’t differentiate between large and small companies; all are required to have an MAB. However, smaller companies can work around this with strategies tailored to their needs. “What matters isn’t the size of the business, but how they adapt. MAB by Deswa will adapt to each company’s needs,” he said.
As the first independent MAB provider in Indonesia, Deswa is committed to providing flexible solutions so that insurance companies can meet these obligations without financial burden.
Meanwhile, Nickolai Indrajasa, Chairman of MAB by Deswa, emphasized that MAB’s existence is a crucial step towards improving the national healthcare system. “If insurance doesn’t offer sound healthcare products, the burden on BPJS Kesehatan and the government will become even heavier,” he stressed.
However, insurance observer Wahju Rohmanti believes that the mandatory establishment of an MAB will not necessarily improve the quality of small insurance companies. “The effects won’t be immediately felt. The MAB doesn’t automatically improve the accuracy of claims management by TPAs compared to self-managed ones,” he explained.
The presence of MAB is expected to be a concrete step in improving the governance, efficiency, and transparency of the health insurance industry in Indonesia.
Indonesia’s Insurance Industry Remains Resilient! AM Best Says Prospects Remain Stable in 2025
Global rating agency AM Best maintained a stable outlook for the general insurance (non-life) industry in Indonesia. This optimism is supported by solid sector growth, increasingly robust regulatory policies, and positive investment returns throughout the year.
In the report entitledMarket Segment Outlook: Indonesia Non-Life Insurance, AM Best assesses that the expansion of the national general insurance industry will continue, driven by massive infrastructure projects, continued strong household spending, and ongoing government investment.
As reported by Insurance Asia on Wednesday, October 15, 2025, these factors are expected to support demand for commercial insurance products, while public awareness of health is also driving premium increases in the health insurance sector.
Strict Regulations Strengthen Industry Foundations
From a regulatory perspective, AM Best noted that most general insurance companies in Indonesia have successfully met the initial stages of implementing the new minimum capital regulations as stipulated in OJK Regulation Number 23 of 2023.
This policy is considered to strengthen the industry’s resilience and long-term financial health, although it creates temporary pressure on small-scale companies still adjusting.
High Interest Rates Are a Blessing for Investment Results
Relatively high domestic interest rates are also said to be a major driver of insurance companies’ investment income. This is because the majority of their investment portfolios are still concentrated in time deposits and fixed-income instruments, which are sensitive to interest rate fluctuations.
Under these conditions, investment returns for general insurance companies in Indonesia remain positive, even though the market faces fluctuating global economic dynamics.
Challenges Remain: Underwriting and Mandatory Rates
Despite the stable outlook, AM Best warned of significant challenges in several business lines, particularly credit insurance and health insurance.
Pressure arises from the increasing risk of bad debt, medical cost inflation, and the potential for fraudulent claims that still haunt the industry.
In addition, the mandatory tariffs on property and motor vehicle insurance products are also considered to limit companies’ flexibility in determining premium prices.
Meanwhile, the trend of electric vehicle adoption brings new risks that require tariff adjustments and more accurate risk underwriting strategies.
New Hope: Tariff Adjustment and Policy Reform
Despite this, AM Best still believes the prospects for the Indonesian general insurance industry will remain stable. The regulatory review currently underway by the national financial authorities has the potential to open up room for more adaptive rate adjustments and policies in the future.
This step is expected to ease profitability pressures while maintaining the competitiveness and resilience of the national insurance industry amidst rapid economic and technological changes.
Trade Wars and Global Conflicts Are Making the Trade Insurance Industry Nervous, Asei Prepares Mitigation Strategies!
Global geopolitical tensions are increasingly becoming a focus for trade insurance industry players.
PT Asuransi Asei Indonesia (Asei) assesses that conflicts such as the United States-China trade war and the Russia-Ukraine war are major factors influencing the dynamics of the current export-import insurance business.
Asei’s Director of Operations and Business Development, Agus Sulih Purwanto, said global uncertainty not only shakes economic stability but also creates new risks that must be seriously mitigated.
According to him, tensions between countries can change at any time and have a direct impact on the flow of international trade.
“Geopolitical developments can change at any time. The Russia-Ukraine conflict is not over yet, while new potentials are emerging in the Middle East. But all of these remain risks that must be mitigated and are within the scope of our protection,” Agus told Insurance Media in Tangerang, Thursday (16/10/2025).
Global Risks Rise, Insurance Premiums Rise
Agus explained that the higher the global geopolitical uncertainty, the greater the potential claims that insurance companies must bear.
This situation ultimately prompted Asei to adjust premium rates, especially for policies covering trade to high-risk countries.
In practice, Asei divides risk categories based on the classification of export destination countries that have been agreed upon with international reinsurance partners.
Countries with strong and stable economies such as Australia, European countries, the UK, and the United States are classified as safe.
Meanwhile, Asei continues to provide coverage for high-risk countries, but with higher premium rates.
“Countries like Afghanistan, Angola, Antigua, and Argentina are in the high-risk category. We still cover these countries, but with adjusted premiums,” Agus explained.
Asei Focuses on Mitigation and Reinsurance
As a major player in the trade and export insurance sector, Asei emphasized that a risk mitigation approach is key to maintaining business portfolio stability.
Cooperation with global reinsurance companies also plays an important role in maintaining capacity and sustainability of protection.
Agus added that the synergy between risk management, geopolitical analysis, and reinsurance support is the foundation for the national insurance industry to remain resilient in the face of global uncertainty.
Various events over the past week demonstrate that the Indonesian insurance industry is moving into a new phase: more transparent, more adaptive, and more integrated with the needs of society and the national economy. Tightened regulations, the consolidation of state-owned enterprises, and increased literacy among MSMEs are strong signals that insurance is no longer just a financial instrument, but a vital foundation for the nation’s economic resilience. With ongoing reforms and the support of digital innovation, the future of the Indonesian insurance industry looks increasingly promising—as long as all stakeholders can maintain public trust and credibility.
