Flood Disrupts Balaraja Factory Operations; Insurance Claim of IDR 1.29 Billion Disbursed

PT Asuransi Mitra Pelindung Mustika (MPMInsurance) has settled a property insurance claim worth IDR 1.29 billion filed by PT Harum Sari Prima Food Industries. The claim pertains to a flood incident that struck the company’s production facility in Balaraja in January 2026. The flooding occurred after a week of intense rainfall caused a river behind the factory site to overflow, inundating the building. The incident disrupted the company’s operational activities and caused losses to assets and production facilities. The event reflects the growing risk of extreme weather facing the business sector. Beyond potential damage to assets, flooding can also impede production and distribution processes and disrupt corporate supply chains. Following the claim submission, MPMInsurance conducted a field review and loss verification process with the client. After all stages were completed, the claim payment amounting to IDR 1,287,042,151 was finalised on 13 May 2026. A symbolic handover of the claim was carried out by MPMInsurance Marketing Director Poppy Panca to Director and Shareholder of PT Harum Sari Prima Food Industries, Djoenaidi Djohan. Poppy stated that the increasing dynamics of business risk and the impact of climate change make the need for asset protection and risk mitigation ever more critical for business players. ‘For industry players, operational disruptions caused by extreme weather changes and natural disasters certainly bring significant impacts to business continuity. Our focus is providing certainty, so that our clients’ business operations can swiftly return to normal,’ she said in an official statement. She noted that insurance protection is not only about claim settlement when risks occur, but also about supporting the business recovery process so companies can resume operations more quickly. Amid the rising challenge of unpredictable extreme weather, insurance companies are seen as having a crucial role in helping business players manage risk and maintain operational continuity.