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Indonesia is currently a major destination for Chinese entrepreneurs in the construction and infrastructure sectors.<\/span> But behind this great opportunity, there is a very high financial risk.<\/span> Unfortunately, many Chinese entrepreneurs in Indonesia do not understand the difference between insurance agents and OJK-approved brokers, and as a result, when project accidents occur, insurance claims are rejected or paid only partially.<\/span><\/p>\n Early last year, Mr. Zhang, a Shenzhen-based construction company owner, worked on a 15-story office building construction project in Tangerang.<\/span> For insurance purposes, Mr. Zhang asked his local staff to contact an \u201cinsurance agent acquaintance\u201d who claimed to be experienced.<\/span> But six months later, disaster struck.<\/span> Mr. Zhang immediately reported the incident to the insurance, confident that everything would be reimbursed.<\/span> \u201cThe claim cannot be processed because the casting method and materials differ from the specifications stated in the project contract that is the basis of the policy.\u201d<\/span><\/p>\n It turned out that the agent never conducted a site visit or requested technical project documents.<\/span> Ultimately, only a small fraction of claims are paid \u2014 and the contractors have to bear tens of billions of rupiah in losses themselves.<\/span><\/p>\n Cases like Mr. Zhang’s are not uncommon.<\/span> Some of the most common mistakes include:<\/span><\/p>\n <\/p>\n However, each project has unique characteristics.<\/span> This is the role that distinguishes official brokers from ordinary agents.<\/span> <\/p>\n A different story comes from PT Great Wall Engineering Indonesia, a Chinese contractor building a steel factory in Cilegon worth IDR 700 billion.<\/span> L&G conducted a site visit, reviewed the design, inspected the geotechnical conditions, and recommended a combination of policies:<\/span><\/p>\n Several months later, major flooding hit the project area due to extreme rainfall.<\/span> The client is satisfied \u2014 the project remains on schedule, and the relationship with the project owner remains good.<\/span><\/p>\n “We are very grateful to have L&G as our partner from the very beginning. They not only helped us create the policy, but they also truly stood by us through difficult times.”<\/span> There are several reasons why many Chinese entrepreneurs in Indonesia are trapped with inappropriate insurance coverage:<\/span><\/p>\n <\/p>\n In fact, the OJK (Financial Services Authority) has stipulated that only official insurance brokers are authorized to represent the interests of the insured, assist in premium negotiations, and assist with claims.<\/span><\/p>\n Agents are the opposite \u2014 they represent insurance companies.<\/span><\/p>\n The following are the types of risks that frequently threaten construction projects in Indonesia:<\/span><\/p>\n <\/p>\n Without a comprehensive policy and an experienced broker, claims for these risks may be rejected or only partially paid.<\/span><\/p>\n Now in the digital era, using an insurance broker is no longer complicated.<\/span> <\/p>\n For Chinese entrepreneurs accustomed to efficient systems, this is a very practical and transparent solution.<\/span><\/p>\n As an official insurance broker registered with the OJK, L&G has extensive experience in handling large projects:<\/span><\/p>\n <\/p>\n L&G not only handles policies, but also protects the investments and business reputation of Chinese entrepreneurs in Indonesia.<\/span><\/p>\n Mr. Zhang’s case serves as an important lesson.<\/span> One wrong clause could result in a claim worth billions of rupiah being lost.<\/span> \u2705<\/span>Comprehensive risk analysis<\/span> <\/p>\n Chinese entrepreneurs in Indonesia, protect your projects with an OJK-registered broker. Contact L&G Insurance Broker now\u2014a trusted partner that understands your business, culture, and language.<\/b><\/p>\n
\n<\/span>From factory construction projects, high-rise buildings, to power plants and industrial areas, the presence of Chinese investment is very dominant.<\/span><\/p>\n
\n<\/span>In any construction project, a small mistake can turn into a loss of hundreds of billions of rupiah \u2014 especially if the insurance coverage is not properly structured.<\/span><\/p>\nWhen the New Building Collapsed Before Its Inauguration<\/span><\/h3>\n
\n<\/span>The project value reaches IDR 350 billion.<\/span><\/p>\n
\n<\/span>The police were published \u2014 it looked complete on paper:<\/span>Contractor\u2019s All Risks (CAR) Insurance<\/span><\/i> And <\/span>Third Party Liability<\/span><\/i>.<\/span><\/p>\n
\n<\/span>While casting the 12th floor, the main scaffolding structure collapsed, causing part of the building to collapse and injuring four workers.<\/span>
\n<\/span>Material losses reached more than IDR 25 billion.<\/span><\/p>\n
\n<\/span>But after investigation, shocking news emerged:<\/span><\/p>\n
\n<\/span>Police are only made based on<\/span>quotation<\/span><\/i>standards, without regard to the differences between planning and implementation.<\/span><\/p>\nCommon Mistakes That Often Occur in Chinese Construction Projects<\/span><\/h3>\n
\n<\/span>Many Chinese contractors and developers in Indonesia do not use OJK-approved brokers, as they consider purchasing insurance from acquaintances or internal sources sufficient.<\/span><\/p>\n\n
\n<\/span>Structural failure, extreme rain, earthquakes, or even human error can cause a chain of losses, including project delays, penalties, and loss of reputation with clients.<\/span><\/p>\nThe Vital Role of OJK-Registered Insurance Brokers in Construction Projects<\/span><\/h3>\n
\n<\/span>An OJK-registered insurance broker such as L&G Insurance Broker not only sells policies, but also:<\/span><\/p>\n\n
Different Examples \u2014 Successful Projects with L&G Insurance Broker<\/span><\/h3>\n
\n<\/span>Before starting the project, they appointed L&G Insurance Broker to arrange complete coverage.<\/span><\/p>\n\n
\n<\/span>Some equipment and building materials were badly damaged.<\/span>
\n<\/span>However, thanks to the detailed policy design and risk report prepared by L&G from the outset, the Rp 18 billion claim was paid in full within 60 days.<\/span><\/p>\n
\n<\/span>\u2014 Mr. Wang, Project Director, PT Great Wall Engineering Indonesia<\/span><\/p>\nWhy Chinese Entrepreneurs Often Make Missteps<\/span><\/h3>\n
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\n<\/span>In China, the project insurance system is more centralized and controlled by the government, whereas in Indonesia, the system is based on strict OJK regulations and requires local expertise.<\/span><\/li>\n
\n<\/span>Many insurance decisions are made by staff who don’t understand the technical details, so important clauses are often missed.<\/span><\/li>\nRisks that Often Occur in Construction Projects<\/span><\/h3>\n
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Digital Services from L&G \u2014 Simplifying Every Process<\/span><\/h3>\n
\n<\/span>L&G Insurance Broker has developed a digital system where:<\/span><\/p>\n\n
L&G Insurance Broker \u2014 OJK’s Official Partner for Construction Projects from China<\/span><\/h3>\n
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Conclusion: Don’t Wait for Your Project to Collapse Before Acting<\/span><\/h3>\n
\n<\/span>Project insurance is not just an administrative requirement \u2014 it is vital protection for assets, reputation, and business continuity.<\/span><\/p>\n
\n<\/span>However, with an authorized broker like L&G Insurance Broker, all risks can be safely controlled.<\/span><\/p>\n
\n<\/span>\u2705<\/span>Best premium negotiation<\/span>
\n<\/span>\u2705<\/span>Complete protection for projects and workers<\/span>
\n<\/span>\u2705<\/span>Claims assistance from start to finish<\/span>
\n<\/span>\u2705<\/span>Fast and transparent digital services<\/span><\/p>\n