OJK Urges Guarantee Companies to Strengthen Feasibility Analysis to Maintain Claim Ratios
The Financial Services Authority (OJK) is urging guarantee companies to strengthen their feasibility analysis for guarantees and claims to ensure that the ratio of claims to guarantee service fees (IJP) remains at a healthy level.
Furthermore, OJK is encouraging guarantee companies to implement optimal risk mitigation and ensure that the determination of IJP is aligned with their risk profiles.
Ogi Prastomiyando, the Executive Head of Insurance, Guarantee, and Pension Fund Supervision at OJK, stated in a written response in Jakarta on Tuesday that the ratio of claims to IJP was recorded at 96.01 per cent as of June 2026.
This ratio showed improvement compared to the previous month’s 100.47 per cent, although it experienced a slight year-on-year increase.
As of June 2026, the IJP for conventional guarantees was recorded at Rp3.59 trillion, while claim expenses reached Rp3.45 trillion.
“The development of claims was influenced by payments made due to defaults by the guaranteed parties, including within the productive and MSME sectors,” said Ogi.
Amid dynamic interest rates and economic conditions, Ogi also reminded that the quality of MSME portfolios must be continuously monitored, as it can affect the repayment capacity of the guaranteed parties and potentially increase guarantee claims.
Meanwhile, IJP revenue as of June 2026 was recorded at Rp4.13 trillion, representing an 18.06 per cent increase year-on-year.
OJK noted that this increase was primarily driven by a rise in IJP at Jamkrindo by 22.28 per cent and Sharia guarantee companies by 15.93 per cent.
In general, OJK noted that the increase in IJP reflects an increase in guarantee volumes and/or changes in the proportion of guarantees undertaken by companies.
During the same period, the assets of the guarantee industry were recorded at Rp45.83 trillion, experiencing a contraction of Rp1.44 trillion (-3.05 per cent year-on-year). Previously, OJK had projected guarantee assets to grow by 14-16 per cent in 2026.
Regarding this development, Ogi stated that OJK still sees room for asset growth until the end of the year, including through the process of purification and the transfer of guarantee business portfolios from insurance companies to guarantee companies as part of the Danantara streamlining process.
Additionally, according to Ogi, asset growth will be influenced by the development of guarantee production, investment returns, and the quality of guarantee portfolio management.
“OJK continues to monitor this process to support the strengthening and sustainable growth of the guarantee industry,” said Ogi.