Banten Industry: The Backbone of the National Economy
Banten Province, especially the Tangerang and Cilegon areas, are two of the most strategic industrial centers in Indonesia.
Tangerang is known as home to thousands of manufacturing plants—from electronics and plastics to food and beverages. Meanwhile, Cilegon is the heart of heavy industry: steel, petrochemicals, cement, and energy.
With its strategic position in the western economic corridor of Java Island, modern port and toll road infrastructure, and access to Jakarta and Soekarno-Hatta Airport, Banten is a major investment magnet.
However, behind this great potential, there are hidden risks that can threaten business continuity: factory fires, explosions, operational disruptions, work accidents, and environmental risks.
“The larger the industry, the more complex the risks,” said a consultant from PT. Liberty and General Insurance Broker (L&G Insurance Broker), a professional insurance broker based in Bintaro, South Tangerang.
For this reason, industrial entrepreneurs in Tangerang and Cilegon require a planned, effective, and professional risk management and insurance protection strategy.
Why Risk Management is Important for Industry in Banten
Every business has risks, but for the industrial sector, the impact can be enormous.
Imagine if a factory in the Cikande industrial area burned down — not only would it lose physical assets, but it would also halt production, lose export contracts, and damage your reputation.
Good risk management not only protects assets, but also maintains business continuity.
Three main reasons why risk management is important:
- Prevent unexpected large losses.
Every Rp1 spent on risk management can save hundreds of millions from potential losses.
- Maintaining client and investor trust.
Companies with good risk protection systems are more trusted by partners and financial institutions.
- Meet legal obligations and industry standards.
Some sectors (such as energy and chemicals) are required to have safety and insurance programs by regulation.
The Most Common Industrial Risks in Tangerang and Cilegon
| Types of Risk | Impact | Case Studies in the Field |
| Fire and Explosion | Facility damage, loss of life, production loss | The paint factory fire in Cikande (2019) caused billions of rupiah in losses. |
| Machine Damage / Breakdown | Downtime, huge repair costs | Plastic injection machine breaks down at Tangerang factory, production halted for 10 days |
| Work accident | Employee injury or death | Petrochemical project workers in Cilegon injured in small explosion |
| Pollution and Contamination | Lawsuits, environmental sanctions | Factory liquid waste pollutes rivers around Cilegon |
| Business Interruption | Loss of revenue due to cessation of operations | Food factory in Bitung stops production for 1 month due to fire |
| Transportation and Logistics | Damage to goods during shipping | Container damaged on the way from Merak to Jakarta port |
| Natural disasters (floods, earthquakes, storms) | Damage to assets and infrastructure | The 2020 Tangerang flood submerged industrial warehouses. |
Each of the above risks requires a different insurance protection approach — and this is where the role of a professional insurance broker like L&G Insurance Broker becomes crucial.
Effective Steps to Manage Risk in the Industrial Sector
Risk management is not just about buying an insurance policy.
It is a comprehensive process that must be carried out systematically.
Step 1: Identify Risks
The management team must recognize all potential threats that could disrupt the company’s operations — from fires, explosions, and electrical system failures to external risks such as supply chain disruptions.
Step 2: Risk Analysis
Conduct an in-depth analysis to assess the probability and impact (severity) of each risk.
Brokers such as L&G Insurance Broker use risk mapping methods to determine protection priorities.
Step 3: Risk Mitigation
Implement preventive measures, such as fire protection systems, machine maintenance, K3 training, and periodic safety audits.
Step 4: Transfer Risk to Insurance
Once the risks are identified and controlled, the remainder is transferred to the insurance company through a properly drafted policy.
“The purpose of insurance is not to replace risk management, but to become part of the risk management strategy itself.” – L&G Insurance Broker
Relevant Insurance Types for Industries in Tangerang & Cilegon
- Industrial All Risk (IAR) Insurance
Protect all physical assets (buildings, machinery, stock, equipment) from various risks: fire, explosion, and unexpected damage.
- Business Interruption Insurance
Covering losses due to the cessation of business activities after a disaster, including lost profits and fixed costs.
- Machinery Breakdown Insurance
Covers the costs of repairing or replacing production machines damaged due to mechanical or electrical failure.
- Public Liability Insurance
Protects against legal liability to third parties due to accidents, pollution or environmental damage.
- Marine Cargo Insurance
Guarantees goods sent by land, sea or air against the risk of accident, theft or damage.
- Workmen’s Compensation Insurance
Provides protection for employees who experience work-related injuries or death.
- Contractor’s All Risk (CAR) / Erection All Risk (EAR)
Required for new machine construction or installation projects.
All of the above policies can be combined and customized by L&G Insurance Broker to suit the risk profile of each industry in Banten.
Case Study: Chemical Factory in Cilegon
A multinational chemical plant in Cilegon once experienced a gas leak incident that forced operations to stop for two weeks.
The losses experienced reached more than IDR 15 billion, including equipment damage and lost production.
Previously, the company only had standard Fire Insurance, which did not cover business interruption.
After working with L&G Insurance Broker, a comprehensive risk audit was conducted. The broker then recommended a combination of:
Industrial All Risk + Business Interruption + Public Liability.
A year later, when a major power outage halted production for 10 days, the company successfully secured a full claim to cover its gross profit loss — because its policy now covered business interruption risks.
Case Study: Electronics Manufacturing in Tangerang
PT Banten Elektronik (pseudonym), a component assembly company in the Jatake industrial area, experienced major machine failure due to a power surge.
Direct losses reached Rp2 billion, not including lost orders from Japanese customers.
With the help of a Broker, they submitted a pre-arranged Machinery Breakdown Insurance claim — the claim was approved in full within 30 days.
Since then, the broker has also helped companies develop preventive maintenance programs and annual risk audits.
Industrial Insurance Premium Estimates in Tangerang and Cilegon
| Type of Industry | Asset Value (Rp) | Main Types of Insurance | Estimated Annual Premium (Rp) |
| Light Manufacturing | 10 billion | IAR + Liability | 25–40 million |
| Chemical Industry | 50 billion | IAR + BI + Public Liability | 120–200 million |
| Logistics & Warehouse | 20 billion | Property All Risk + Marine Cargo | 40–60 million |
| Energy / Steel | 100 billion+ | IAR + BI + Machinery Breakdown | 200–400 million |
Premiums depend on risk profile, location, building materials, protection systems, and previous claims experience.
With the support of a broker like L&G Insurance Broker, premiums can be negotiated more efficiently without compromising on coverage.
Industrial Insurance Claim Procedures (With L&G Insurance Broker)
- Initial Report (24 Hours) – Client reports to L&G after the incident occurs.
- Initial Documentation & Inspection – The broker team assists in preparing photographic evidence, chronological reports, and loss inventories.
- Coordination with Loss Adjuster.
- Claim Negotiation. L&G acts as the client’s representative to ensure the compensation amount is in accordance with the policy contract.
- Claim Payment. Funds are monitored until they are received in full by the customer.
Example:
A fire claim at a Tangerang textile factory worth Rp 8 billion was settled in just 40 working days thanks to assistance from L&G Insurance Broker.
The Role of Insurance Brokers in Efficient Risk Management
- Many industrial companies still purchase insurance directly through agents, even though the agents represent the insurance company, not the customer.
- In contrast, insurance brokers such as L&G Insurance Broker are independent advisors responsible for:
- Assess risks and recommend appropriate protection.
- Compare offers from different insurance companies.
- Negotiate the terms, premiums, and conditions of the policy.
- Accompanying customers during the claims process.
Thus, brokers help companies save time, costs, and avoid the risk of being underinsured.
Comparison of Brokers vs Insurance Agents
| Aspect | Insurance Broker (L&G) | Insurance Agent |
| Represented party | Customer | Insurance Company |
| Product Coverage | Multi-company | One company |
| Risk Analysis | In-depth, data-driven | Generally there is none |
| Claims Assistance | Active and technical | Limited |
| Risk Report | Provided in writing | Not available |
| Objectivity | Independent | Tends to be biased |
Industrial Challenges in Banten Related to Risk
- Industrial Area Density → increases the potential for fire spread.
- Limitations of the protection system in the old factory.
- Environmental risks increase with the expansion of the chemical industry.
- Lack of awareness about the importance of annual risk audits.
- Dependence on one insurance company without comparison.
L&G Insurance Broker helps clients in Banten overcome all these challenges through a professional and measured approach.
L&G Insurance Broker’s Leading Services for the Banten Industry
As an OJK-licensed insurance broker based in Bintaro, South Tangerang, L&G Insurance Broker has served hundreds of companies in the Banten region.
Main services include:
- Risk Assessment & Survey Industry.
- Policy Design & Placement.
- Premium Negotiation.
- Claim Handling & Advocacy.
- Annual Policy Review.
L&G clients come from a wide range of sectors: steel, chemicals, logistics, manufacturing and hospitality.
L&G’s primary focus is to provide risk solutions that are efficient, transparent and tailored to local needs.
The Real Impact of Insurance Broker Assistance
Based on L&G’s experience:
- Clients save 15–30% on annual premiums.
- The claims process is up to 40% faster and more efficient.
- Policy protection increases with additional guarantees previously unnoticed.
- Entrepreneurs better understand risk management and legal obligations.
“L&G Insurance Broker not only helps you purchase insurance, but also acts as a strategic partner in maintaining the continuity of industrial businesses in Banten.”
Conclusion: Protect Your Industrial Assets with a Professional Approach
Industrial businesses in Tangerang and Cilegon are the engines of Banten’s economy — but they also face high risks that could shut down operations in an instant.
Therefore, risk management and insurance are not just obligations, but strategic needs.
With PT. Liberty and General Insurance Broker (L&G Insurance Broker) as your partner, your business protection process becomes easier, more efficient, and more scalable.
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HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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💬“We protect your business, so you can focus on growing it.”
