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Imagine this: a shipping vessel from Surabaya to Batam is hit by a severe storm. High waves batter the ship, and several containers are thrown overboard. One of them contains electronic components worth over $1 million, belonging to a Chinese company that has recently expanded its operations in Indonesia.<\/span><\/p>\n The business owners believed all their goods were insured\u2014until they learned their claim had been rejected by the insurance company. The reason? The policy only covered land risks, not maritime ones. The agent who helped them purchase the policy never explained this.<\/span><\/p>\n Ultimately, huge losses are irreparable, supply chains are disrupted, and the company’s reputation among its key clients is ruined.<\/span><\/p>\n In recent years, many Chinese companies have operated logistics businesses in Indonesia\u2014whether as importers, exporters, distributors, or transportation providers. Their transaction value can reach hundreds of billions of rupiah each month.<\/span><\/p>\n But ironically, many of them ignore the risk management aspect, especially in terms of insurance.<\/span> As a result, when incidents such as:<\/span><\/p>\n <\/p>\n Insurance claims often go unpaid \u2014 not because the insurance company refuses without reason, but because the policy was not properly drafted from the start.<\/span><\/p>\n There are several root causes that often arise:<\/span><\/p>\n Many foreign business owners assume that the insurance system in Indonesia is similar to that in China. However, legally, agents in Indonesia represent the insurance company, not the customer.<\/span><\/p>\n This means that when a claim arises, the agent is not obligated to assist you. Instead, an OJK-approved insurance broker is obligated to defend the interests of the insured (the customer).<\/span><\/p>\n In many cases, Chinese business staff or translators in Indonesia lack a thorough understanding of insurance. Misinterpretation of terms such as <\/span>All Risks<\/span><\/i>, <\/span>Marine Cargo<\/span><\/i>, or <\/span>Deductible Clause <\/span><\/i>can result in incorrect or incomplete policies.<\/span><\/p>\n Some entrepreneurs are tempted by low premiums without realizing that low premiums usually mean limited coverage. In logistics, one small detail in a clause can determine whether you receive full compensation or not.<\/span><\/p>\n The Indonesian government, through the Financial Services Authority (OJK), requires that insurance brokers be professionals who must defend the interests of the insured.<\/span><\/p>\n Referring to POJK No. 69\/POJK.05\/2016, brokers have the following main functions:<\/span><\/p>\n <\/p>\n Without a licensed broker, customers face significant risks when making claims because no one is truly on their side.<\/span><\/p>\n One real-life example comes from a Chinese client who imported heavy equipment components for a mining project in Kalimantan.<\/span> Initially, the insurance company tried to reject the claim on the grounds that improper<\/span> packaging<\/span><\/i> And <\/span>driver negligence <\/span><\/i>However, because the Insurance Broker had negotiated the “Loading and Unloading Clause” and “Negligence of Carrier Covered” clauses from the outset, the claim was finally paid in full within 60 days.<\/span><\/p>\n This shows the real difference between purchasing a policy through a regular agent and using a licensed insurance broker who understands the risks of the logistics industry in depth.<\/span><\/p>\n For Chinese entrepreneurs operating in Indonesia, here are the main risks to consider:<\/span><\/p>\n <\/p>\n All of these risks must be arranged in the right combination of policies, such as:<\/span><\/p>\n <\/p>\n Without broker guidance, it is difficult for foreign companies to understand all the clauses and determine an effective combination.<\/span><\/p>\n In the past, entrepreneurs considered insurance to be complicated and time-consuming. But now, L&G Insurance Broker offers a digital solution that makes it easy for Chinese entrepreneurs to manage all their insurance needs quickly and transparently.<\/span><\/p>\n Through an online-based system, all processes \u2014 from premium offers, negotiations, policy issuance, to claims reporting \u2014 can be done in a short time.<\/span> Many Chinese entrepreneurs have succeeded in Indonesia’s logistics sector due to their operational efficiency and precision. However, that efficiency can collapse quickly if insurance coverage is not properly managed.<\/span><\/p>\n Some key lessons:<\/span><\/p>\n Using an authorized insurance broker does not mean additional costs, but rather additional protection and certainty.<\/span> With extensive experience, a global network, and a deep understanding of cross-cultural business, L&G Insurance Broker is ready to help Chinese entrepreneurs in Indonesia ensure that every shipment, every warehouse, and every logistics asset is fully protected and claimed without any obstacles in the event of a disaster.<\/span><\/p>\n \u2014<\/span><\/p>\n DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.<\/b><\/p>\n HOTLINE L&G 24 JAM:<\/b> 0811-8507-773<\/b><\/a> (CALL \u2013 WHATSAPP \u2013 SMS)<\/b><\/p>\n Website: <\/span>lngrisk.co.id<\/span><\/a>\u00a0<\/span><\/p>\nReal Cases Like This Happen More Often Than You Think<\/span><\/h3>\n
\n<\/span>They believe insurance is just a formality, or think it is enough to buy a policy from a local agent or acquaintance without checking its legality and coverage.<\/span><\/p>\n\n
Why Do Many Chinese Entrepreneurs Make This Mistake?<\/span><\/h3>\n
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The Financial Services Authority (OJK) has clearly regulated the role of insurance brokers.<\/span><\/h3>\n
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True Story: Insurance Broker Settles Large-Value Logistics Claim<\/span><\/h3>\n
\n<\/span>During delivery, the delivery truck overturned on an uphill road, causing damage to goods worth more than Rp 8 billion.<\/span><\/p>\nKey Risks in the Logistics Business in Indonesia<\/span><\/h3>\n
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The Digital Era: Logistics Insurance Is Now Easier and Faster<\/span><\/h3>\n
\n<\/span>L&G also has a team of bilingual experts (Indonesian, Mandarin, and English) who understand the business character of Chinese entrepreneurs in Indonesia.<\/span><\/p>\nImportant Lessons for Chinese Entrepreneurs<\/span><\/h3>\n
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Conclusion: A Licensed Insurance Broker Is a Strategic Partner, Not an Additional Expense<\/span><\/h3>\n
\n<\/span>In the logistics industry, where one small mistake can cost billions in losses, having a partner who understands your risks is the best form of investment.<\/span><\/p>\n