LPS Reports Policy Guarantee Programme Preparations 80 Per Cent Complete

Jakarta — Preparations for implementing the Policy Guarantee Programme under the Deposit Insurance Corporation (LPS) have reached 80 per cent completion.

Suwandi, Executive Director of Surveillance, Data, and Insurance Inspection at LPS, stated that the corporation has undertaken preparations spanning infrastructure to policy development.

“My estimate would be somewhere between 70 and 80 per cent,” he said during a Limited Discussion Iftar with Journalists on Updates to Indonesia’s Insurance Industry Ahead of LPS Policy Guarantee Implementation on Thursday, 12 March 2026.

He added that LPS is currently awaiting the results of amendments to Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (P2SK Law) to complete preparations for the policy guarantee programme.

“The law is currently being amended, still in discussion at the working committee,” he explained.

Once this is concluded, LPS will establish LPS regulations and subsequently implement them through commissioner board member regulations.

Suwandi noted that the corporation is also preparing human resources. “Many of our colleagues come from the banking sector, so we all need to switch our knowledge and understanding from banking to insurance,” he said.

First, the industry this year is preparing for the implementation of reporting based on International Financial Reporting Standards (IFRS) 17. This financial reporting standard will change how the health ratios of insurance companies are calculated.

“So the industry colleagues are having a tough time,” he remarked.

Additionally, the insurance industry is still working to meet minimum capitalisation requirements of Rp 250 billion.

Third, Suwandi noted that the insurance industry is facing regulations requiring the separation of Sharia business units (UUS) by December 2026.

“We must be able to anticipate how these three matters will impact the policy guarantee programme,” he concluded.