Badung, CNBC Indonesia \u2013 The Indonesia Deposit Insurance Corporation\n(LPS) believes the consolidation of state-owned insurance companies into\nseveral holding companies will have little effect on participation in\nthe policy guarantee programme that LPS will operate.<\/p>\n
Ferdinan D. Purba, a member of the Board of Commissioners responsible\nfor the Policy Guarantee Programme, explained that participation would\nbe based on companies conducting insurance activities directly, rather\nthan solely on their position within a corporate holding structure.<\/p>\n
He said state-owned insurers would be consolidated into several\nholdings by grouping companies with similar business activities.\nHowever, the structural changes would not automatically alter how\nparticipation in the policy guarantee programme is determined.<\/p>\n
\u201cThis guarantee refers to the entities that conduct insurance\nactivities,\u201d Ferdinan said at an LPS media gathering at the Movenpick\nHotel Jimbaran in Badung, Bali, on Friday (18 October 2026).<\/p>\n
He cited general insurer PT Asuransi Jasa Indonesia (Jasindo), which\ncould be placed in a separate holding. In life insurance, the reference\npoint for determining participation would be the company that directly\nconducts insurance business, such as IFG Life.<\/p>\n
Ferdinan explained that participants would be the entities that\nconduct insurance business and issue policies, rather than parent\ncompanies whose role is limited to operating as holdings.<\/p>\n
He pointed to the structure of Indonesia Financial Group (IFG), which\nhas IFG Life as the entity conducting its life insurance business. IFG,\nas the holding company, does not directly issue policies.<\/p>\n
Ferdinan compared the arrangement with the bank deposit guarantee\nprogramme. Under that programme, deposits are linked to the bank that\naccepts them and issues deposit products. In insurance, the focus is on\nthe company issuing insurance products.<\/p>\n
With this approach, he said, the formation of insurance holdings\nwould not significantly affect which entities join LPS\u2019s policy\nguarantee programme, as participation would continue to be determined\nseparately for each insurer conducting business.<\/p>\n
\u201cI think that with this approach, the holding structure will not\naffect how membership is managed, because it is specific to each\nindividual insurance company,\u201d Ferdinan said.<\/p>\n
Nevertheless, consolidation could create a separate issue if an\ninsurer within a holding company encounters difficulties. In such\ncircumstances, coordination between LPS and the parent company would be\nimportant, particularly because the holding company is the insurer\u2019s\nshareholder.<\/p>\n
Ferdinan stressed that this matter relates more to handling a\ntroubled insurer, or resolution, than to determining participation in\nthe policy guarantee programme.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/state-owned-insurers-to-consolidate-lps-explains-the-impact-1792385429", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }