{
    "success": true,
    "data": {
        "id": 1749898,
        "msgid": "lps-ready-to-guarantee-insurance-policies-but-not-all-companies-will-qualify-1780889298",
        "date": "2026-05-19 19:50:10",
        "title": "LPS Ready to Guarantee Insurance Policies, But Not All Companies Will Qualify",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Finance",
        "summary": "The Indonesia Deposit Insurance Corporation (LPS) has confirmed its readiness to implement the insurance policy guarantee programme by 2028 at the latest. However, unlike the banking sector, only insurance companies meeting specific solvency and health criteria will be eligible for coverage.",
        "content": "<p>The Indonesia Deposit Insurance Corporation (LPS) has stated it is\nprepared to carry out its mandate regarding the insurance policy\nguarantee programme (PPP). The Chairman of the LPS Board of\nCommissioners, Anggito, noted that based on the P2SK Law, the guarantee\nprogramme will be implemented no later than 2028.<\/p>\n<p>\u201cIf asked whether we are ready, LPS is ready,\u201d he stated during a\nHearing with Commission XII at the DPR RI building in Jakarta on Tuesday\n(19\/05\/2026).<\/p>\n<p>Anggito explained that LPS has prepared a roadmap for the insurance\npolicy guarantee programme for the 2023-2027 period. \u201cWe have been\npreparing, but the specific wording in the P2SK Law remains to be\nfinalised. Currently, it states no later than 2028, and we will follow\nwhatever decision is made,\u201d he said.<\/p>\n<p>However, Anggito revealed that under the policy guarantee programme,\nnot all insurance companies will be guaranteed, unlike the banking\nsector. \u201cThe difference is that in insurance, not all companies will be\nparticipants in the guarantee,\u201d he explained.<\/p>\n<p>Anggito further clarified that LPS has established criteria that\ninsurance companies must meet to become participants. \u201cWe will implement\na cut-off based on Risk-Based Capital (RBC) or financial health.\nTherefore, it will not be like banks where everyone is included,\u201d he\nnoted, adding that determining who qualifies as a participant is a\ncrucial factor.<\/p>\n<p>Furthermore, Anggante added that LPS has already prepared the\nnecessary organisational and institutional structures, including the\nappointment of a Board of Commissioners member specifically for the\ninsurance policy guarantee programme. \u201cWe now have the Board members,\nthe organisation, consultants, and a roadmap. We are currently drafting\nregulations and conducting simulations,\u201d he said.<\/p>\n<p>Additionally, the institution has initiated work on calculating\nfinancial health and membership requirements. \u201cRegarding whether there\nis a difference between premium funds from banks and insurance: the P2SK\nLaw specifies they are separate, but there is a provision for\n\u2018interborrowing\u2019. This means in the event of an insurance resolution\nwhere premium funds have not yet been fully collected, they may\ntemporarily borrow funds, although the accounting remains separate,\u201d he\nconcluded.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/lps-ready-to-guarantee-insurance-policies-but-not-all-companies-will-qualify-1780889298",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}