{"id":9084,"date":"2025-11-12T23:10:19","date_gmt":"2025-11-12T16:10:19","guid":{"rendered":"https:\/\/ligaasuransi.com\/?p=9084"},"modified":"2025-11-12T23:10:19","modified_gmt":"2025-11-12T16:10:19","slug":"kerugian-ratusan-miliar-di-proyek-tambang-kesalahan-fatal-pengusaha-asal-china-yang-salah-pilih-agen-asuransi","status":"publish","type":"post","link":"https:\/\/ligaasuransi.com\/en\/kerugian-ratusan-miliar-di-proyek-tambang-kesalahan-fatal-pengusaha-asal-china-yang-salah-pilih-agen-asuransi\/","title":{"rendered":"Hundreds of Billions in Mining Losses: Fatal Mistake by Chinese Entrepreneurs Who Chose the Wrong Insurance Agent"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">One morning in Southeast Sulawesi, a cloudy sky shrouded the nickel mining area that had just been inaugurated six months earlier. This massive project was being undertaken by a consortium of Chinese entrepreneurs in partnership with a local company. Everything seemed to be going smoothly\u2014until heavy rain fell for three consecutive days.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A massive landslide occurred. The mining road collapsed, heavy equipment was buried in mud, and the production area was completely paralyzed. Losses are estimated at over Rp 300 billion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the real problem arose when the management team filed an insurance claim. The insurance company rejected it, citing the absence of a clause <\/span><i><span style=\"font-weight: 400;\">landslide and flood extension<\/span><\/i><span style=\"font-weight: 400;\">&#8220;in the police.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Chinese businessmen were shocked. They were sure they had already bought <\/span><i><span style=\"font-weight: 400;\">Comprehensive Project Insurance <\/span><\/i><span style=\"font-weight: 400;\">with complete protection. However, it was later discovered that the policy was prepared by a local agent without OJK authorization, and the entire document was prepared without any risk analysis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, projects worth trillions of rupiah lost protection because of just one mistake: not using an authorized insurance broker.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">The Harsh Reality of the Mining World<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The mining industry in Indonesia\u2014whether nickel, coal, gold, or bauxite\u2014is a high-risk business. Every day, there is the potential for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Work accident,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Landslide, flood, or explosion,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Heavy equipment damage,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal liability towards third parties,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">And operational disruptions due to extreme weather.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Financial losses from a single incident can reach hundreds of billions of rupiah. Therefore, insurance is not merely an administrative obligation, but the heart of mining risk management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, many Chinese businessmen who come to Indonesia still think the system is the same as in China\u2014easy, fast, and can be handled by local acquaintances or agents who \u201cusually help with insurance.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yet the Indonesian legal system strictly regulates the roles of agents and brokers. This difference often leads to major problems.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Agents Are Not Your Defenders \u2014 Brokers Are the One Who Must Defend Entrepreneurs&#8217; Interests<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Based on POJK No. 69\/POJK.05\/2016 and POJK No. 24\/2023, the roles of agents and brokers are fundamentally different:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insurance Agent \u2192 represents the insurance company, is responsible for selling products and increasing premiums.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insurance Broker \u2192 represents the insured (customer\/entrepreneur), is responsible for protecting the client&#8217;s interests, preparing insurance programs, and assisting with the claims process until completion.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">That is why the OJK only grants permission to official insurance brokers to provide advice and assistance in preparing policies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In other words:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If Chinese entrepreneurs use unlicensed agents, they are left to fend for themselves when claims arise.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">A Tale of Two Mining Projects \u2014 Two Different Fates<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To illustrate how crucial the role of brokers is, let&#8217;s look at two real-life cases that occurred in Indonesia.<\/span><\/p>\n<p><b>\ud83d\udccd<\/b><b>Case One \u2013 Coal Mining Project in Kalimantan<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A Chinese company purchased insurance through a local agent without OJK permission. When a conveyor belt was damaged due to overheating, the claim was rejected because &#8220;mechanical wear and tear is not covered under the policy.&#8221; No <\/span><i><span style=\"font-weight: 400;\">Machinery Breakdown Extension<\/span><\/i><span style=\"font-weight: 400;\">, There isn&#8217;t any <\/span><i><span style=\"font-weight: 400;\">Loss of Profit Clause<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Losses: more than Rp. 75 billion.<\/span><\/p>\n<p><b>\ud83d\udccd<\/b><b>Case Two \u2013 Nickel Mine in Morowali Assisted by L&amp;G Insurance Broker<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Before the policy is issued, L&amp;G conducts a comprehensive risk assessment:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Analysis of mining areas for landslide and flood risks,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review contracts with EPC contractors and heavy equipment lessees,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Addition of important clauses such as:<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><i><span style=\"font-weight: 400;\">Flood and Landslide Clause<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><i><span style=\"font-weight: 400;\">Automatic Reinstatement of Sum Insured<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><i><span style=\"font-weight: 400;\">Debris Removal Clause up to 10%<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><i><span style=\"font-weight: 400;\">Professional Fees Clause<\/span><\/i><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">When flash floods occurred and some heavy equipment was damaged, L&amp;G immediately took charge of the claims process. Within 60 days, the insurance company paid the full Rp 42 billion claim.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The difference in results is not a coincidence\u2014it is because legitimate insurance brokers know how to protect the interests of entrepreneurs.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Why Chinese Entrepreneurs Need an OJK-Registered Insurance Broker<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are three main reasons why Chinese entrepreneurs in the mining sector must use an official broker such as L&amp;G Insurance Broker:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Certainty of Protection<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">An authorized broker will ensure that every risk\u2014whether landslides, explosions, heavy equipment damage, or legal liability\u2014is included in the policy with the appropriate clauses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Negotiating Premiums and Policy Conditions<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Brokers have extensive networks with local and international insurance companies. They negotiate the best premium rates with maximum protection.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Claim Assistance<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">When a disaster occurs, the broker not only submits a report, but also fully assists in the investigation, loss adjuster documentation, and claims payment.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">While an agent can simply say, \u201cwe\u2019ll help you send it to the insurance company,\u201d a broker will fight to get the claim paid in full according to the policy.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Types of Insurance that Mining Projects Must Have<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">L&amp;G Insurance Brokers typically recommend the following combination of coverage for mining companies:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Property All Risks \/ Industrial All Risks (IAR) \u2013 protects mining facilities and infrastructure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Machinery Breakdown \u2013 for heavy equipment, conveyor, crusher, and power plant breakdowns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contractor\u2019s Plant and Machinery (CPM) \u2013 covers losses to heavy equipment during operation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Third Party Liability (TPL) \u2013 legal protection against third parties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Workmen\u2019s Compensation \/ Personal Accident \u2013 \u200b\u200bprotection for local and foreign workers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business Interruption Insurance \u2013 covers loss of income due to operational disruptions.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">With this combination, each mining project will be protected from financial risks that could halt operations.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">L&amp;G Insurance Broker: A Trusted Partner for Energy &amp; Mining Projects<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As an official insurance broker registered with the OJK, L&amp;G has handled major projects in various sectors, including nickel, coal, and mineral mining.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">L&amp;G Advantages:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2705<\/span><span style=\"font-weight: 400;\">Experienced team of experts in the energy &amp; mining sector,<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2705<\/span><span style=\"font-weight: 400;\">Professional risk assessment before the policy is issued,<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2705<\/span><span style=\"font-weight: 400;\">Negotiate premiums &amp; terms with the best insurance companies,<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2705<\/span><span style=\"font-weight: 400;\">Fast and transparent claims assistance,<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2705<\/span><span style=\"font-weight: 400;\">Digital &amp; multilingual services (Mandarin, English, Indonesian) to facilitate cross-cultural communication.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of L&amp;G&#8217;s clients, a Chinese nickel mining company in Halmahera, experienced damage to a smelter<\/span><i><span style=\"font-weight: 400;\"> plant<\/span><\/i><span style=\"font-weight: 400;\">. Thanks to L&amp;G&#8217;s assistance, claims worth <\/span><b>Rp 87 billion paid in full<\/b><span style=\"font-weight: 400;\">, even though initially the insurance company was only willing to pay half.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">A Serious Message for Chinese Entrepreneurs&#8217; Staff &amp; Translators<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Many Chinese businesspeople entrust insurance matters to their staff or translators in Indonesia. However, this responsibility&#8230;very large.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you choose the wrong agent who is not licensed, then when disaster strikes, you could be accused of negligence and cause losses to the company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Make sure you only work with an official insurance broker registered with the OJK &#8211; Because OJK legally requires brokers to represent the insured, not the insurance company.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Conclusion: Don&#8217;t Repeat the Same Mistakes<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Every year, millions of dollars are lost because entrepreneurs choose the wrong agent or don&#8217;t read the policy properly.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">But the real solution is simple: use a licensed insurance broker who is on your side.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are a Chinese entrepreneur investing in Indonesia&#8217;s mining sector \u2014 whether in Morowali, Halmahera, Kalimantan, or Papua \u2014 make sure you don&#8217;t put your business&#8217;s future in the wrong hands.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Contact L&amp;G Insurance Broker today.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">An official, trusted broker with over 30 years of experience defending the interests of clients in the energy, mining, and heavy industry sectors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don&#8217;t let one small mistake cost you hundreds of billions.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Choose the right protection. Choose L&amp;G Insurance Broker\u2014an insurance partner who is truly on your side.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2014<\/span><\/p>\n<p><b>DON&#8217;T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.<\/b><\/p>\n<p><b>HOTLINE L&amp;G 24 JAM:<\/b><a href=\"https:\/\/wa.me\/628118507773?text=Halo%20Liberty,%20Saya%20sudah%20berkunjung%20ke%20website%20lngrisk.co.id.%20Boleh%20saya%20tanya%20lebih%20jauh?\"><b> 0811-8507-773<\/b><\/a><b> (CALL \u2013 WHATSAPP \u2013 SMS)<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Website: <\/span><a href=\"http:\/\/lngrisk.co.id\"><span style=\"font-weight: 400;\">lngrisk.co.id<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Email: <\/span><a href=\"mailto:halo@lngrisk.co.id\"><span style=\"font-weight: 400;\">halo@lngrisk.co.id<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2014<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>One morning in Southeast Sulawesi, a cloudy sky shrouded the nickel mining area that had just been inaugurated six months earlier. This massive project was being undertaken by a consortium of Chinese entrepreneurs in partnership with a local company. Everything seemed to be going smoothly\u2014until heavy rain fell for three consecutive days. A massive landslide [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":9085,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[84,37],"tags":[1426,405],"class_list":{"0":"post-9084","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-industri-pertambangan","8":"category-risk-recommendation","9":"tag-china","10":"tag-industri-pertambangan"},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/posts\/9084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/comments?post=9084"}],"version-history":[{"count":1,"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/posts\/9084\/revisions"}],"predecessor-version":[{"id":9086,"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/posts\/9084\/revisions\/9086"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/media\/9085"}],"wp:attachment":[{"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/media?parent=9084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/categories?post=9084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/tags?post=9084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}