OJK Reveals Secrets to a Secure Retirement

Yogyakarta, CNBC Indonesia – The Financial Services Authority (OJK) has stressed the importance of preparing financially from a young age to ensure a more prosperous future. One way to do this is by securing insurance coverage early.

Sumarjono, Head of the OJK’s Insurance and Supporting Services Supervision Department, said the public needs to anticipate various future risks.

‘If you want to be secure in old age, we must prepare and plan from now,’ Sumarjono said at the Educational Class of the 2026 Jogja Financial Festival titled ‘Young and Wealthy, Old and Secure’ at the Jogja Expo Centre (JEC) in Bantul on Saturday, 23 May 2026.

He noted that insurance plays a vital role in society, covering health, financial stability, and overall welfare. However, Indonesia’s insurance penetration rate remains relatively low.

OJK data shows Indonesia’s insurance penetration rate stood at 2.7% in 2025, lagging behind ASEAN peers such as Singapore, Malaysia, the Philippines, Thailand, and Vietnam.

Sumarjono explained that low insurance penetration is due to several factors, including the public’s lack of awareness about risks affecting their livelihoods.

Additionally, past experiences of claim payment failures in the insurance industry have affected public trust in insurance products.

Nevertheless, he observed growing public interest in insurance education, particularly among the youth.

This was evident from the enthusiasm of participants, including students and the general public, at the 2026 Jogja Financial Festival’s Educational Class.

During the discussion session, several students cited reasons why young people remain reluctant to take up insurance despite understanding the importance of financial protection.

Some said insurance terms are difficult to understand, while others view it as offering poor returns compared to investment instruments like shares when surplus funds are available.

These insights are considered crucial by speakers to expand education and boost insurance uptake among the younger generation.

The event also featured AAJI Handojo G Kusuma, Chairman of the Inter-Institutional Cooperation, Domestic and International Regulators and Stakeholders, and Heru Handayanto, Chief Financial Officer of Indonesia Financial Group (IFG).