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In recent years, Indonesia has become a prime investment destination for Chinese property entrepreneurs. From industrial estate developments in Karawang, apartment projects in Jakarta, and commercial complexes in Surabaya, the investment value reaches trillions of rupiah.<\/span><\/p>\n However, behind the glitz of these projects lies a significant risk that is often overlooked: inadequate insurance coverage. Many Chinese entrepreneurs believe it’s enough to simply purchase a policy from a local agent or acquaintance without checking the insurance’s credibility and terms.<\/span><\/p>\n As a result, when a fire, flood, or earthquake occurs \u2014 they only realize that their insurance coverage is inadequate or even invalid.<\/span><\/p>\n Some time ago, a Chinese company constructing a modern office building in Tangerang’s business district experienced a major fire. Losses were estimated at Rp 120 billion.<\/span><\/p>\n The company felt secure because it had a property insurance policy purchased through an \u201cagent they knew.\u201d However, when it filed a claim, it was shocked by the harsh reality: the claim was denied by the insurance company.<\/span><\/p>\n The reason?<\/span><\/p>\n <\/p>\n Companies lose billions of rupiah without protection, even though the additional costs of using an official insurance broker registered with the OJK are almost non-existent.<\/span><\/p>\n There are several common reasons:<\/span><\/p>\n The Indonesian government, through the Financial Services Authority (OJK), has issued POJK No. 69\/POJK.05\/2016, which emphasizes that insurance brokers are required to defend the interests of the insured (customer), not the insurance company.<\/span><\/p>\n Broker functions include:<\/span> On the other hand, agents are only tasked with selling insurance company products, so they cannot be a neutral party.<\/span><\/p>\n In the property business, each stage has different risks:<\/span><\/p>\n <\/p>\n An insurance broker such as L&G Insurance Broker will assess all these risks and ensure each risk has relevant insurance coverage and sufficient coverage.<\/span><\/p>\n Additionally, L&G helps negotiate the best premiums without sacrificing coverage, and ensures all claim documents are properly prepared to avoid rejections.<\/span><\/p>\n In the past, the insurance process was considered slow and bureaucratic. That’s no longer the case. Through L&G Insurance Broker’s digital system and online platform, the entire process\u2014from risk analysis and quotation to claims reporting\u2014can be conducted quickly and transparently.<\/span><\/p>\n L&G also has a bilingual team (Indonesian \u2013 Mandarin \u2013 English) which facilitates communication between Chinese entrepreneurs and insurance companies in Indonesia.<\/span><\/p>\n A Chinese manufacturing company in Batam experienced a major fire in its warehouse, causing losses of up to IDR 45 billion. Thanks to the assistance of L&G Insurance Broker, the entire claim was paid in full within three months.<\/span><\/p>\n The key is in:<\/span><\/p>\n <\/p>\n Without a broker, this case could result in a denial or partial claim.<\/span><\/p>\n For Chinese entrepreneurs in Indonesia, large-scale property investment is not just about building a building \u2014 it’s also about protecting assets and ensuring business continuity.<\/span><\/p>\n A small mistake in choosing an insurance company can cause financial losses of up to hundreds of billions of rupiah.<\/span><\/p>\n Therefore:<\/span><\/p>\n <\/p>\n And for that, L&G Insurance Broker is ready to be a strategic partner for Chinese entrepreneurs throughout Indonesia \u2014 ensuring that every asset, project, and investment is protected with the best guarantees and professional services.<\/span><\/p>\nTrue Story: Commercial Building Burns Down, Claim Denied<\/span><\/h3>\n
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Why Do Many Chinese Entrepreneurs Make Missteps?<\/span><\/h3>\n
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\n<\/span>Many entrepreneurs assume the Indonesian insurance system is similar to China’s, where agents can act independently. However, in Indonesia, agents legally represent the insurance company, not the client.<\/span><\/li>\n
\n<\/span>In Chinese business culture, personal trust is crucial. However, in insurance, professionalism and OJK licensing are far more important than mere personal relationships.<\/span><\/li>\n
\n<\/span>Many translators or local staff do not understand the provisions of Indonesian insurance law, so they choose the wrong partner and put their company at great risk.<\/span><\/li>\n<\/ul>\nOJK Clearly Regulations: Brokers Must Defend Customers<\/span><\/h3>\n
\n<\/span>\u2705<\/span>Analyze the risks professionally before purchasing a policy.<\/span>
\n<\/span>\u2705<\/span>Find an insurance company with the best terms and rates.<\/span>
\n<\/span>\u2705<\/span>Assist in negotiating premiums and important clauses.<\/span>
\n<\/span>\u2705<\/span>Accompanying and fighting for claims in the event of a loss.<\/span><\/p>\nThe Vital Role of Authorized Insurance Brokers in the Property Industry<\/span><\/h3>\n
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Digital Technology Makes Business Easier for Chinese Entrepreneurs<\/span><\/h3>\n
Case Study: L&G Assists with Industrial Building Claims in Batam<\/span><\/h3>\n
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Conclusion: Protect Your Investment Before It’s Too Late<\/span><\/h3>\n
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