OJK Head Speaks Out on Insurance Policy Guarantee Premiums
The Financial Services Authority (OJK) has provided an update regarding the premiums for the Insurance Policy Guarantee Programme (PPP), which is set to be implemented by the Indonesia Deposit Insurance Corporation (LPS) starting in 2028. The Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at OJK, Ogi Prastomiyono, stated that the amount is currently still under discussion and will be finalised through further coordination between the government, OJK, LPS, and the Ministry of Finance.
He noted that the determination of the premium amount will consider various aspects, including industry conditions, the risk profiles of insurance companies, the sustainability of the guarantee fund, and the balance between policyholder protection and industry capacity.
Ogi stated that his agency supports a premium structure that will not burden the insurance industry, ensuring that the PPP can operate effectively. “OJK supports the determination of premiums that reflect the principles of prudence and proportionality, without creating an excessive burden on the industry, so that the Policy Guarantee Programme can run effectively, sustainably, and strengthen public confidence in the insurance industry,” Ogi said in a statement on Monday (1/9/2026).
Previously, the Chairman of the LPS Board of Commissioners, Anggito, mentioned that based on the P2SK Law, policy guarantees will be implemented no later than 2028. Anggito explained that the LPS has prepared a roadmap for the preparation of the policy guarantee programme for the 2023-2027 period.
However, he revealed that under the policy guarantee programme, not all insurance companies will be guaranteed, unlike in the banking sector. “The difference is that in insurance, not all companies will be participants in the guarantee,” he stated during a Hearing with Commission XII at the DPR RI building in Jakarta on Tuesday (19/5/2026).
Anggito explained that the LPS has established criteria that insurance companies must meet to become participants in the guarantee scheme. “We will implement a cut-off based on meeting RBC (Risk-Based Capital) or health criteria. So, it will not be like banks where everyone is included,” he said.
“This is the crucial part—determining who becomes a participant and who does not,” he added.
Anggito further noted that, so far, the LPS has prepared the organisational and institutional framework, including the appointment of a Board of Commissioners member specifically for the policy guarantee programme field.