OJK and Government Explore Insurance Scheme for 3 Million Houses Programme
The Financial Services Authority (OJK) and the government, through relevant ministries and institutions, are exploring an insurance scheme for the 3 Million Houses programme to protect debtors and property assets from various long-term risks.
“Since this programme involves financing for more than 10 years, we want protection for the participants,” said the Executive Head of the Insurance, Guarantee, and Pension Fund Supervision (PPDP) OJK, Ogi Prastomiyono, in response to reporters’ questions after the PPDP Regulatory Dissemination Day event in Jakarta on Monday.
Ogi views the 3 Million Houses programme as long-term financing, even exceeding 15-20 years, thus requiring mitigation of various risks, from the debtor’s death to property damage due to earthquakes, fires, and floods, through an insurance scheme.
According to him, purchasing risk coverage should not be seen as a cost burden, but rather as protection against long-term risks in housing financing.
In addition, OJK is encouraging the involvement of the insurance industry in health programmes to reduce the high portion of direct payments by the public (out-of-pocket), which currently stands at 28.8% of total national health expenditure, or around Rp175 trillion, with hopes of lowering it through increased participation in insurance, both BPJS and commercial.
OJK, together with relevant ministries and institutions, is working to shift that portion to commercial insurance, which currently accounts for only about 5% of total national health expenditure.
He assesses that the contribution of insurance and pension fund assets to GDP is still relatively limited, creating a gap that needs to be addressed to strengthen the sector’s role in the economy.
Therefore, OJK is encouraging the PPDP sector to become a driver of strengthening domestic financing while supporting sustainable national development financing.
As of the end of February 2026, the total assets of the PPDP sector reached Rp2,992 trillion, or grew 9.94% year-on-year (yoy), with investment value at Rp2,313 trillion, increasing 7.94% year-on-year.
According to Ogi, this condition indicates strong industry fundamentals, supported by strengthened regulations and increased supervision by OJK.
Nevertheless, he emphasises the need for more targeted efforts so that PPDP sector growth can be more optimal and capable of meeting long-term financing needs.
He added that the main challenge for the PPDP sector is to ensure industry growth exceeds the targeted national economic growth of around 5-8% in the coming years.
However, to achieve the 2029 Medium-Term National Development Plan (RPJMN) targets, Ogi said that higher growth is needed, namely around 7-9% for insurance and up to 20-23% per year for pension funds.
“Strategies to achieve that growth must of course be carried out together, both through extensification and intensification of existing programmes,” said Ogi.