OJK States IFG Has Submitted Plan for SOE Insurance Consolidation
The Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at the Financial Services Authority (OJK), Ogi Prastomiyono, stated that Indonesia Financial Group (IFG) has submitted a plan for the consolidation of state-owned enterprises (SOEs) within the insurance sector. IFG, also known as PT Bahana Pembinaan Usaha Indonesia (BPUI), serves as the holding company for SOEs in insurance, guarantees, and investment.
Ogi Prastomiyono noted in Jakarta on Friday that OJK is continuously coordinating with relevant stakeholders to ensure the consolidation process is measured and does not disrupt operations or public services. The plan for conventional general insurance SOEs involves both full and selective consolidation, while the consolidation of conventional life insurance companies will be carried out in several stages through acquisitions or mergers. Meanwhile, the consolidation of Sharia general insurance companies will be achieved by acquiring one of the companies and transferring business portfolios to it.
Beyond insurance, Ogi mentioned that IFG has also proposed a consolidation plan for conventional guarantee companies through a business purification scheme, alongside plans for Sharia guarantee companies. However, the regulator has not yet received detailed proposals regarding the consolidation of state-owned reinsurance companies. Regarding the final number of entities that will exist post-consolidation, Ogi stated that this will depend on the decisions and designs established by shareholders and relevant parties.
Consolidation is an initiative supported by OJK to enable domestic insurance and reinsurance companies to strengthen their capital and equity, thereby ensuring they can meet obligations to policyholders. OJK has mandated that conventional insurance companies meet a minimum equity requirement of IDR 250 billion, Sharia insurance companies IDX 100 billion, conventional reinsurance companies IDR 500 billion, and Sharia reinsurance companies IDR 200 billion by 31 December 2026. As of April 2026, 118 out of 145 insurance and reinsurance companies, both conventional and Sharia, have met these minimum equity requirements. OJK is encouraging companies that have not yet met the criteria to develop and implement measured capital strengthening plans. Ogi clarified that if companies fail to meet the requirements by the deadline, OJK will take supervisory measures in accordance with regulations, including requiring companies to implement recovery plans and other gradual supervisory actions.