15 Insurance Brokers Suspected Illegal, Apparindo Chairman Issues Warning
Jakarta, CNBC Indonesia - The Indonesian Insurance and Reinsurance Brokers Association (Apparindo) has urged insurance companies not to cooperate with brokerage firms suspected of operating without a licence from the Financial Services Authority (OJK).
Apparindo Chairman and Chairman of the Indonesian Insurance Council (DAI) Yulius Bhayangkara said the association welcomes the OJK’s initiative to crack down on illegal insurance brokers. According to him, strengthening and developing the insurance industry must be accompanied by a comprehensive improvement of the industry ecosystem.
Yulius stressed that illegal insurance brokerage firms are not members of Apparindo and are not registered with the OJK. Consequently, these firms are not legally part of the legitimate insurance ecosystem in Indonesia.
“Illegal brokers are not members of Apparindo and are not registered with the OJK. They are dark and legally do not exist in the insurance ecosystem,” Yulius told CNBC Indonesia on Tuesday (5/8/2026).
He added that illegal brokers operate outside the regulator’s supervision, potentially posing risks to the industry and consumers. Therefore, Apparindo supports the OJK’s enforcement measures while upholding the principles of prudence and legal compliance.
Furthermore, Yulius stated that Apparindo supports the restructuring of illegal brokers to be carried out carefully and in accordance with applicable regulations. This step is considered important so that regulatory enforcement can run effectively and provide legal certainty for all industry players.
“We call for support so that insurance companies do not transact with dark (illegal) brokers who are not registered with the OJK and Apparindo,” Yulius stressed.
Previously, the OJK revealed that 15 companies were indicated to be conducting insurance brokerage business without a licence. The OJK will take firm action against these findings through a legal enforcement process that is currently underway.
Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at OJK, Ogi Prastomiyono, said there are currently 191 brokerage firms registered with the OJK. The breakdown consists of 150 insurance brokerage firms and 41 reinsurance brokerage firms.
Ogi explained that every brokerage firm is required to employ at least one broker who has been registered through the Professional Certification Institute (LSP) and licensed by the OJK.
“OJK still finds parties carrying out activities resembling insurance brokerage by employing insurance agents but conducting brokerage activities. Legal enforcement is being carried out, and to date there are 15 companies indicated to be conducting insurance brokerage business without a licence,” Ogi said during the OJK Board of Commissioners Meeting press conference on Tuesday (4/8/2026).
Currently, the cases of these 15 companies are being handled by OJK investigators, ranging from the inquiry and investigation stages to some that have already entered the trial process.
In addition to taking action against companies suspected of operating without a licence, the OJK has also taken supervisory action against insurance companies that cooperate with unlicensed brokers. The OJK has carried out supervisory action by ordering the termination of such cooperation and imposing administrative sanctions on the violators.
On the other hand, the OJK is strengthening supervision through the implementation of QR Code verification on Registration Certificates (STTD). Through this system, the public and industry players can verify the status of brokers in real time, thereby minimising potential losses from using unlicensed brokers.
The OJK has also required all insurance brokerage and reinsurance brokerage firms to re-register all employed brokers to obtain QR Code-based STTDs. This process is currently ongoing, with 434 brokers having been registered.