OJK Pushes Policyholder Guarantee Program to Begin in 2027, Benefits Outlined

Jakarta — The Financial Services Authority (OJK) is pushing to accelerate the implementation of the policyholder guarantee program to 2027. Sumarjono, head of the Insurance and Supporting Services Supervision Department at OJK, said the program, which will be under the Deposit Insurance Corporation (LPS), is expected to be officially in operation starting 2028. ‘If previously under the P2SK Law the guarantor of policies would commence five years after enactment, meaning 2028, this will be brought forward to 2027,’ he said at Kompas.com Talks: a New Standard for Insurance Governance and Customer Protection in Indonesia, Thursday (5 March 2026). He hopes the revision of the Financial Services Sector Development and Strengthening Act (UU P2SK) can be pursued and succeed quickly. Debtor rescue for insurance companies could occur during resolution by inviting investors. ‘If suddenly there is an investor who wants to buy, why should we close it?’ he said. Sumarjono hopes the remaining time can be used to settle problem insurance companies. This can be done by collaborating with investors to shore up capital. He believes once the policy guarantee program is in force, insurance companies without guarantees will not be able to compete with others. ‘I am convinced they will not compete with insured insurance companies that already carry the LPS label,’ he explained. For information, the policy guarantee program aims to protect policyholders by requiring each participating insurance company to meet certain health standards. The selection process for insurance companies that can join the program is conducted by LPS, with an assessment of the company’s soundness aligned with the Otoritas Jasa Keuangan (OJK).