LPS Prepares Insurance Policy Guarantee, Targeting 2027 Activation
The Indonesia Deposit Insurance Corporation (LPS) is targeting the insurance policy guarantee programme to become active by 2027. Currently, the LPS is preparing the LPS Regulation (PLPS) to serve as the legal basis for the programme’s implementation.
LPS Board of Commissioners Chairman, Anggito Abimanyu, stated that preparations for the insurance policy guarantee are ongoing. Implementation also remains dependent on the issuance of Government Regulations (PP) and coordination with the Financial Services Authority (OJK) and the Ministry of Finance.
“We are currently preparing the PLPS to facilitate registration,” Anggito said during a press conference at the Lampung Financial Festival (Lampung Finfest) 2026 in Bandar Lampung on Friday night (4/9/2026).
Anggito explained that the LPS membership mechanism for insurance companies will differ from that of the banking sector. While banks are mandatory members of the LPS, insurance companies must meet specific requirements to participate in the guarantee scheme.
“For banks, membership in the LPS is compulsory. For insurance, it is not; there are certain requirements,” he noted.
According to Anggito, these requirements involve capital conditions and the Risk-Based Capital (RBC) adequacy ratio. “It involves capital, RBC, capital adequacy, and other factors. We are currently formulating these,” he said.
LPS hopes the insurance policy guarantee programme can begin operating in 2027. However, Anggito emphasised that implementation requires coordination with the OJK and the government. “Therefore, we hope activation can occur by 2027. We hope so, because we are not working alone. We must reach an agreement, particularly with the OJK and also the Ministry of Finance as the government,” he added.
Anggito mentioned that the deadline for the programme’s implementation is January 2028 at the latest, though LPS hopes it can be implemented sooner. “The final deadline is January 2028. We hope it can be active by mid-year,” said Anggito.