Sun Life's Sharia Business Enters Final Phase, Spin-Off to Be Completed by 2026

JAKARTA - PT Sun Life Financial Indonesia is preparing to execute the separation of its Sharia business unit (UUS), targeted for completion in the second half of this year.

Sun Life Indonesia President Director Albertus Wiroyo stated that since the beginning of the year, the company has established a new entity to operate the Sharia business, named PT Sun Life Syariah.

This is part of fulfilling the spin-off obligation in accordance with the Financial Services Authority (OJK) regulations as stipulated in OJK Regulation (POJK) No. 11/2023.

“This year is the final year, so a spin-off must occur. We have been carrying it out since the beginning of the year; the PT has already been established,” he said after a press conference in Jakarta on Friday (8/5/2026).

He revealed that the spin-off process has now entered the fit and proper test stage for the prospective management of the new Sharia insurance company.

“We hope that in the third quarter, fourth quarter, all portfolios from the Sharia unit can be transferred to the new company, namely PT Sun Life Syariah,” he added.

For information, the plan to spin off Sun Life Indonesia’s UUS has been discussed since 2014 following the issuance of Law No. 40 of 2014. The UUS itself was established by the company in 2010.

In 2016, the company stated it was refining the spin-off steps by building dedicated Sharia distribution channels and agencies to make the Sharia business more independent before separating it from the parent company.

Sun Life Indonesia also expressed its commitment to strengthening Sharia-based insurance business in Indonesia through the establishment of a standalone Sharia insurance company.

“We must be strong first before the spin-off in 2019,” said Head of Sharia at Sun Life, Srikandi Utami, in 2016.