OJK Accelerates Policy Guarantee Scheme with LPS, Scheduled for Implementation in 2027

Jakarta, CNBC Indonesia - The Indonesian Financial Services Authority (OJK) is continuously strengthening consumer protection in the insurance sector. To this end, the OJK is accelerating the implementation of the Policy Guarantee Program (PPP), which will be carried out in collaboration with the Deposit Insurance Corporation (LPS) in 2027.

The Head of the Supervision of Insurance, Guarantee, and Pension Funds Division at the OJK, Ogi Prastomiyono, stated that the OJK is paying close attention to the protection of policyholders. In this regard, the OJK is also conducting supervision of insurance product designs and continuing with strict supervision of approved insurance products.

“Furthermore, we are currently discussing the policy guarantee program (PPP) as mandated by the Financial System Stability and Crisis Management (P2SK) Law, which stipulates that a policy guarantee program will be implemented no later than 2028,” he said at the Insurance Forum “Optimizing Insurance Protection and the New Direction of Unit Link Development in Indonesia” on Thursday (February 26, 2026).

In addition, Ogi said that discussions have been held regarding the possibility of accelerating the implementation of the policy guarantee program in 2027. The OJK is also continuing to improve the corporate governance of insurance companies, including by strengthening the competence of insurance company management, including the professionals who run the insurance companies.

“We have issued a POJK (OJK Regulation) stating that each insurance company is required to allocate at least 3.5% of its HR costs for the development of the competence of insurance professionals. We are also enforcing the requirement that each insurance company must have an actuary or appointed authority,” he explained.

Furthermore, efforts to strengthen the governance of insurance agents and brokers will also be carried out by the OJK. In the future, all insurance agents and brokers must be registered with the OJK. In addition, the OJK also has the authority to cancel the registration of these agents and brokers.

As an initial initiative and foundation, the OJK launched a national policy database in 2025. This aims to ensure data-based insurance policy guarantees with accurate data.

(dpu/dpu)