OJK Reveals Huge Potential for Pet Insurance in Indonesia
Jakarta, CNBC Indonesia - Pets are often considered part of the family. Like humans, animals can face health and life risks.
Thus, pet insurance is available, though it may feel unfamiliar to the public. In Indonesia, such insurance is already on the market, albeit in limited quantities.
The Executive Head of Insurance, Guarantee, and Pension Fund Supervision at OJK, Ogi Prastomiyono, stated that pet insurance holds potential in Indonesia. According to him, the phenomenon of pets increasingly playing a role as family members, particularly among urban communities, presents an opportunity for product development.
“Currently, the costs of animal medical care, such as hospitalisation and surgical procedures, are generally borne independently by owners. In the Asia-Pacific region, the pet insurance market shows fairly high growth, while penetration in Indonesia remains relatively low, thus opening up considerable room for development in the future,” Ogi said in his statement on Thursday (9/4/2026).
On the other hand, he noted that pet insurance products in Indonesia are still limited, with a relatively small number of providers, not yet reaching the market widely, and public literacy levels that still need improvement.
“OJK views this situation as an opportunity for the industry to develop innovative products that meet public needs, while still adhering to principles of prudence, consumer protection, and business sustainability,” Ogi added.
Like general insurance, pet insurance provides financial protection in the event of risks or unwanted incidents involving pets.
Pet insurance is actually part of general insurance, but its protection form is somewhat similar to life and health insurance.
The main benefits of pet insurance include coverage for death due to accidents up to cremation costs. In addition, this insurance can cover treatment expenses if the pet needs to be hospitalised at a veterinary clinic.
Not only that, this insurance can also cover third-party treatment costs if your pet causes injury to another person or animal.
Quoting Mordor Intelligence, the Asia-Pacific pet insurance market size is valued at US$9.69 billion in 2025. This value is estimated to grow from US$11.41 billion in 2026 to US$25.94 billion in 2031, with a CAGR of 17.82% over the forecast period (2026-2031).
Increasing disposable income, rising animal care costs, and the growing view that pets are family members are driving this accelerated growth. Adoption is spreading from established regions like Japan and Australia to high-growth countries including China, India, and major Southeast Asian economies.