DAI Chairman Outlines Challenges for the Insurance Industry in 2026

Jakarta, CNBC Indonesia - The Chairman of the Indonesian Insurance Council (DAI), Yulius Bhayangkara, has outlined several challenges facing the insurance industry. One of these is related to the mandatory capital adjustment.

“We have several targets, such as achieving the required capital, and meeting the targets set by the Financial Services Authority (OJK). These are some of the challenges,” he said at the Insurance Forum “Optimizing Insurance Protection and the New Direction of Unit Link Development in Indonesia”, Thursday (February 26, 2026).

Based on POJK Number 23 of 2023, the Financial Services Authority has set mandatory capital adjustments for insurance companies in two phases, namely in December 2026 and December 2028.

The initial phase of capital adjustment requires all insurance companies to meet minimum equity requirements of IDR 250 billion for conventional insurance companies, IDR 500 billion for conventional reinsurance companies, IDR 100 billion for Sharia insurance companies, and IDR 200 billion for Sharia reinsurance companies.

Furthermore, the OJK will implement higher capital requirements based on the company’s scale of business classification (KPPE) as of December 31, 2028.

KPPE 1 (smaller scale of business) with details of a minimum of IDR 500 billion for insurance companies, a minimum of IDR 1 trillion for reinsurance companies, a minimum of IDR 200 billion for Sharia insurance companies, and a minimum of IDR 400 billion for Sharia reinsurance companies.

Then KPPE 2 (larger scale of business) with details of a minimum of IDR 1 trillion for insurance companies, a minimum of IDR 2 trillion for reinsurance companies, a minimum of IDR 500 billion for Sharia insurance companies, and a minimum of IDR 1 trillion for Sharia reinsurance companies.

To achieve these capital targets, according to Yulius, the insurance industry must maintain good trust from both consumers and shareholders.

“So that there is funding because of our good prospects. This is our homework,” he said.

In addition, the need for Work Competency Certification (SKK). The industry is required to improve the quality of human resources by involving human resources in the development of competencies in technical, non-technical, and leadership fields.

This is based on the OJK Circular Letter on Work Competency Certification for Insurance Companies, Guarantee Institutions, Pension Funds, and Special Institutions in the Field of Insurance, Guarantee, and Pension Funds.

“We also ask for assistance from the OJK so that there is harmonization. For example, the law has mandated Legal Liability Insurance. However, this has not been implemented yet because it is waiting for harmonization. Cases like this are what we need, as well as human resource competencies and certifications, which are now becoming more stringent,” Yulis concluded.