{"id":8675,"date":"2025-10-22T16:40:57","date_gmt":"2025-10-22T09:40:57","guid":{"rendered":"https:\/\/ligaasuransi.com\/?p=8675"},"modified":"2025-10-22T16:40:57","modified_gmt":"2025-10-22T09:40:57","slug":"tanpa-asuransi-cpm-proyek-asing-di-indonesia-bisa-alami-kerugian-ratusan-juta","status":"publish","type":"post","link":"https:\/\/ligaasuransi.com\/en\/tanpa-asuransi-cpm-proyek-asing-di-indonesia-bisa-alami-kerugian-ratusan-juta\/","title":{"rendered":"Without CPM Insurance, Foreign Projects in Indonesia Could Suffer Hundreds of Millions in Losses"},"content":{"rendered":"

In recent years, Indonesia has become a fertile ground for foreign construction companies. Major infrastructure projects like the Indonesian Capital City (IKN), a smelter in Sulawesi, a toll road in Sumatra, and a power plant in Kalimantan are being undertaken by numerous contractors from China, Korea, Japan, and Europe.<\/span><\/p>\n

But behind these great opportunities, there is a risk that is often overlooked: heavy equipment damage in the field.<\/span><\/p>\n

A single crane or excavator is worth billions of rupiah. If it’s damaged or overturned, losses can reach hundreds of millions to billions of rupiah in an instant.<\/span><\/p>\n

This is the reason why <\/span>CPM heavy equipment insurance<\/span><\/a> (Contractors Plant & Machinery) is very important, it can even be said to be a must for all foreign companies operating in Indonesia.<\/span><\/p>\n

Unfortunately, many foreign contractors still don’t understand how the Indonesian insurance system works. Many purchase insurance directly from insurance companies or through agents, unaware that only insurance brokers are legally responsible for representing the interests of the insured (customer).<\/span><\/p>\n

If a large claim occurs, an agent can’t help. A broker can.<\/span>
\n<\/span>And in Indonesia, the big name that has been proven to help foreign companies in hundreds of projects is <\/span>L&G Insurance Broker<\/span><\/a>.<\/span><\/p>\n

\ud83d\udcde FREE consultation now!<\/span>
\n<\/span> Whatsapp <\/span>08118507773<\/span><\/a> | <\/span>halo@lngrisk.co.id<\/span><\/a>
\n<\/span>Find the best solution for your CPM heavy equipment insurance before the project starts.<\/span><\/p>\n

True Story: Losing Hundreds of Millions Just Because You Don’t Have Insurance<\/b><\/h3>\n

Just imagine this.<\/span>
\n<\/span>A Chinese construction company is working on a dam project in Sulawesi. They are bringing more than 15 units of heavy equipment: excavators, bulldozers, dump trucks, and large cranes.<\/span><\/p>\n

One night, heavy rains lashed the project site. A landslide struck one of the heavy equipment units, causing extensive damage. Repairs were estimated at Rp 600 million.<\/span><\/p>\n

Unfortunately, the company has not had the opportunity to purchase a local CPM insurance policy because it considers the protection from its headquarters in China to be sufficient.<\/span>
\n<\/span>When they filed a claim with the central insurance, the answer was disappointing:<\/span><\/p>\n

\u201cSorry, the incident is outside our area of \u200b\u200bresponsibility.\u201d<\/span><\/p>\n

Losses must be borne alone.<\/span>
\n<\/span>The project stalled for two weeks, operational costs ballooned, and the company’s reputation in the eyes of the project owner declined.<\/span><\/p>\n

Cases like this are not rare.<\/span>
\n<\/span>Every year, many foreign companies in Indonesia lose hundreds of millions of rupiah simply because they don’t understand the obligations and insurance systems of local CPM heavy equipment.<\/span><\/p>\n

Why Foreign Projects Must Have Local CPM Insurance<\/b><\/h3>\n

Indonesia has a clear rule: every contractor working on a large project, especially a government or state-owned enterprise project, is required to have local insurance licensed by the OJK.<\/span><\/p>\n

Policies from abroad are not legally recognized, because:<\/span><\/p>\n

    \n
  1. The project location is outside the policy area,<\/span><\/li>\n
  2. There is no legal standing for foreign insurance companies to process claims in Indonesia,<\/span><\/li>\n
  3. Government tender regulations require all insurance to be done through local companies.<\/span><\/li>\n<\/ol>\n

    So, even if you have coverage from your head office, you still need a local CPM policy to work on Indonesian projects safely and legally.<\/span><\/p>\n

    What exactly is CPM insurance?<\/b><\/h3>\n

    Contractor’s Plant & Machinery (CPM) insurance is a type of insurance that provides protection for heavy equipment used in construction projects.<\/span><\/p>\n

    The protection includes:<\/span><\/p>\n