By 2025, India will become one of Indonesia’s largest sources of investment. Indian companies will enter almost every sector: manufacturing, power plants, mining, logistics, digital, pharmaceuticals, and even EPC.
But the most surprising fact is this:
More than 70% of Indian entrepreneurs in Indonesia do not have proper insurance coverage.
One real-life example occurred in 2024. An Indian company operating a plastics factory experienced a major fire due to a short circuit in an electrical panel. Losses reached IDR 33 billion, but the company only received a claim payment of IDR 6.8 billion because:
- assets are under-insured
- no machinery breakdown
- no business interruption
- standard policy wording
- all because the policy was purchased without a broker
These losses hit cash flow, halted production, and triggered the termination of contracts with several important clients.
Important lesson: Proper insurance coverage is not an expense, but a strategy for maintaining business continuity.
10 Main Types of Businesses Indian Entrepreneurs Do in Indonesia & Their Insurance Solutions
Here are the main sectors where Indian entrepreneurs operate in Indonesia — and the main risks they face.
- Manufacturing Plants (Plastics, Textiles, Chemicals, Components)
Main risks:
- fire
- engine failure
- business disruption
- worker accidents
- pollution
Mandatory insurance:
- PAR/IAR
- Machinery Breakdown (MB)
- Business Interruption (BI)
- Public Liability
- Product Liability
- Workmen Compensation
Sample case:
An Indian textile mill lost Rs 12 billion due to a loom fire — the claim was paid in full after a program was arranged by L&G.
- EPC & Infrastructure Contractors (Power Plant, Boiler, Utility)
Main risks:
- structural failure
- damage during installation
- heavy equipment accidents
- project delays
Mandatory insurance:
- CAR (Construction All Risks)
- EAR (Erection All Risks)
- DSU (Delay in Start Up)
- TPL Project
- CPM (heavy equipment)
- Marine Cargo
Sample case:
India’s Sumatra boiler project suffered damage during testing → L&G helped secure a Rp 4.2 billion claim in full.
- Mining Companies & Mining Contractors
Main risks:
- heavy equipment damage
- work accident
- landslide
- coal hauling accident
Mandatory insurance:
- CPM
- Fleet
- TPL Mining
- Workmen Compensation
Sample case:
120-ton excavator overturns due to rain → L&G handles Rp 6.1 billion claim.
- Logistics & Supply Chain Companies
Main risks:
- truck overturned
- damaged goods
- lost cargo
- warehouse on fire
Mandatory insurance:
- Marine Cargo ICC A
- Inland Transit
- Stock Throughput (STP)
- Freight Forwarder Liability
Sample case:
Imported chemical cargo damaged → USD 950,000 claim paid.
- IT & Digital Companies (Software, Cloud, Fintech)
Main risks:
- ransomware
- data breach
- hacking
- system error (bug)
Mandatory insurance:
- Cyber Liability
- Technology PI
- D&O
- Property (server)
Sample case:
Indian fintech company suffers data breach → L&G drafts cyber policy, claims Rp 3 billion paid.
- Indian Trading & Importing Companies
Main risks:
- damage to goods during delivery
- wrong document
- claims from distributors
- forwarder error
Mandatory insurance:
- Marine Cargo
- Trade Credit Insurance
- Liability Importer
Sample case:
Indian spare parts importer experiences damage during unloading → Rp 2.4 billion claim settled.
- Cold Chain, Food & F&B Processing
Main risks:
- broken freezer
- stock damage
- food contamination
- health liability
Mandatory insurance:
- Stock Throughput
- Cold Storage Insurance
- Product Liability
Sample case:
Cold room damage caused F&B stock to be damaged → Rp 1.8 billion claim paid.
- Indian Pharmaceutical Company
Main risks:
- product contamination
- sterilization machine failure
- lawsuit
- loss of cold stock
Mandatory insurance:
- PAR/IAR
- MB + BI
- Product Liability (Pharma)
- Recall Insurance
- General Construction Companies (Civil, Mechanical, Electrical)
Main risks:
- work accident
- damage to work
- project owner lawsuit
Mandatory insurance:
- CAR/EAR
- TPL Project
- Work Accident
- New Renewable Energy Companies (Solar Farm, Hydro, Biomass)
Main risks:
- panel damage
- weather disturbances
- damaged structure
- operational disruption
Mandatory insurance:
- Renewable Energy Package
- Property + BI
- Liability
Common Problems Indian Businessmen Face While Buying Insurance (Without a Broker)
- Police not up to the risk
- Under-insured (asset value is incorrect)
- No risk audit
- No additional wording
- No Business Interruption
- No DSU for large projects
- Claims are often rejected
This is a classic problem that hurts many Indian entrepreneurs.
Important Indonesian Insurance Regulations for Indian Entrepreneurs
- Law No. 40 of 2014 – concerning Insurance
- POJK No. 69/POJK.05/2016 – Operational standards for insurance companies
- POJK No. 23/POJK.05/2015 – Brokers are required to represent the Insured
- POJK 72–73 – Governance & Risk Management
Regulation ensures that every insurance company operates to high standards and is transparent.
Why Indian Entrepreneurs MUST Use Insurance Broker Services
Broker:
- represent the interests of the Insured, not the insurance company
- properly organize the police structure
- prepare international wording
- tender to many insurance companies
- ensure claims are always paid
- understanding the risks of Indian industry in Indonesia
- free service, because it is paid for by the insurance company
Without a broker, police misconduct is almost certain to occur.
L&G Insurance Broker – The Strongest Partner for Indian Entrepreneurs in Indonesia
For 30+ years, L&G has served many Indian companies in Indonesia in the sectors:
- manufacturing
- power plant
- logistics
- mine
- EPC
- IT & digital
- trading
- pharmacy
- F&B
- renewable energy
L&G Advantages:
- large claim experience of Rp. 17 billion
- expert CAR/EAR, PAR, MB, BI, CPM, Liability
- deep understanding of risk engineering
- international standard wording
- strong network to global insurance & reinsurance companies
- expert in handling Indian clients (culture & expectation)
L&G is not just an intermediary — but a risk advisor and protector of your investment.
Indian Businesses Thrive in Indonesia, But They Can Only Survive If Risks Are Properly Protected
Indonesia is a huge market, full of opportunities for Indian entrepreneurs.
But without proper protection:
- one accident can destroy cash flow,
- one fire can destroy a business,
- one legal claim can stop operations,
- one cyber attack can ruin a reputation.
Insurance is not an expense — it’s an investment protection strategy.
With the support of L&G Insurance Broker, Indian entrepreneurs can ensure that all major risks are covered:
- safe assets
- safe project
- safe employees
- liability aman
- business continues without interruption
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DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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Disclaimer
This article is intended as a general guide to the types of risks and insurance needs of various Indian businesses in Indonesia. The information provided does not replace the specific risk analysis required for each business, asset, contract, and project. Each company has unique risk characteristics, and therefore, insurance programs must be professionally designed through technical studies. For optimal coverage, including PAR, CAR/EAR, MB, BI, CPM, Liability, and Cyber, readers are advised to work with an OJK-licensed insurance broker such as L&G Insurance Broker to ensure proper policy formulation and maximum claim payout.
