How OJK Upgrades Insurance Industry Governance
Jakarta – Indonesia’s Financial Services Authority (OJK) is continuing to strengthen the national insurance industry by upgrading governance structures across insurance companies in the country. Ogi Prastomiyono, Chief Executive of the OJK’s Insurance, Guarantee and Pension Fund Supervision Division, stated that the authority has undertaken various efforts to promote strengthened governance in the national insurance industry. This is evidenced by the issuance of numerous new regulations to support the domestic insurance ecosystem and oversight of the sector.
These include OJK Regulation (POJK) No. 26 and POJK No. 27 of 2025 as refinements to rules on asset and liability management, and POJK No. 36 of 2025 concerning the health insurance ecosystem. Additionally, OJK has implemented Financial Insurance Accounting Standards (PSAK) 117 on insurance contracts and PSAK 119 on financial instruments, effective from 1 January 2025, with all insurance companies now submitting monthly publication reports to OJK.
OJK has intensified governance strengthening efforts, including raising the competency of insurance company management and professionals administering these firms. Prastomiyono noted that OJK has issued regulations requiring each insurance company to allocate at least 3.5% of human resources expenses for developing professional competencies in the insurance sector. Enforcement has also been strengthened regarding the mandatory appointment of company actuaries or appointed authorities by every insurance company.
Governance improvements also target insurance agents and brokers. Insurance agents and brokers must now register officially with OJK, which holds authority to cancel registrations of those not meeting criteria. Additionally, OJK is strengthening its insurance policy database as part of broader governance improvements. All policies issued by insurance companies must now be submitted to OJK, enabling the authority to track policy circulation and detect risks of misuse.
OJK has also enhanced insurance product oversight through pre-sale product examinations and strict post-approval monitoring to ensure comprehensive consumer protection for policyholders. These efforts are expected to improve the national insurance industry’s performance in both the short and long term.
The national insurance industry demonstrated solid performance throughout 2025. Total assets across all insurance sectors in Indonesia reached Rp 1.201 trillion in 2025, representing stable 6% annual growth, aligning with OJK’s initial growth target of 6% to 8%. OJK projects insurance asset growth of 5% to 7% for 2026.
Commercial insurance premium realisation reached Rp 331 trillion through end-2025, declining 1.46% compared to the previous year, primarily due to reduced life insurance business, product and distribution improvements, and impacts from global economic conditions on the insurance sector. National insurance claims realisation totalled Rp 216 trillion in 2025, down approximately 4.85% year-on-year, indicating that claims trends have begun to stabilise and are being managed effectively by insurance companies.