OJK to Revise Insurance RBC Calculation Method in Line with Global Standards, Here is the Target
Jakarta, VIVA – The Financial Services Authority is adjusting the risk-based capital (RBC) calculation method for the insurance industry through the OJK Regulation on Insurance Solvency Calculation, targeted for issuance this year. The adjustment refers to international standards.
The plan was conveyed by the Head of the Insurance, Guarantee, and Pension Fund Supervisory Executive of OJK, Ogi Prastomiyono, after the PPDP Regulatory Dissemination Day event in Jakarta on Monday, 13 April 2026.
“We will likely continue to use the 120 percent threshold (for RBC), but the calculation method will be adjusted to follow international standards,” said Ogi.
Ogi explained that the adjustment refers to the standards set by the International Association of Insurance Supervisors (IAIS), particularly the Insurance Capital Standard (ICS).
According to him, the principles in ICS are general and more targeted at Internationally Active Insurance Groups (IAIG) or large-scale insurance companies, while OJK must also adapt them to the conditions of the domestic insurance industry.
“The main point is that we are following international standards. We must not fall out of line with international practices,” said Ogi.
He also emphasised that capitalisation is the main foundation for the resilience of the insurance industry as a buffer against risks. OJK, through the new provisions to be implemented this year, aims to gradually increase the equity of the insurance industry and apply company classifications through KPPE (Equity-Based Insurance Company Groups) 1 and KPPE 2.
“So, if equity has increased, the risk-based capital calculation already follows international standards, there is a standard for insurance contracts under PSAK 117, and so on, we hope the insurance industry will be even better in the future,” said Ogi.
He added that strengthening the insurance industry requires time and collaboration, given that the sector’s contribution to GDP is still around 6 percent and is considered to have potential for further improvement.
For information, the insurance industry’s assets in February 2026 reached Rp1,219.35 trillion, up 6.80 percent year-on-year (yoy) from the same position in the previous year, which was Rp1,141.71 trillion.
The life insurance industry as well as general insurance and reinsurance in aggregate recorded RBC levels of 480.83 percent and 327.98 percent, respectively, above the 120 percent threshold.
In total, the PPDP sector’s assets in the same period have reached Rp2,992 trillion, growing by 9.94 percent yoy, with investments worth Rp2,313 trillion, also growing by 7.94 percent yoy.