Indonesia offers capital incentives for insurers’ sustainable investments
A 2026-2030 roadmap sets out roles for insurers, guarantee institutions and pension funds as investors and providers of risk protection.
Indonesia’s Financial Services Authority (OJK) launched a sustainable finance roadmap for insurers, guarantee institutions and pension funds in Jakarta on 29 October 2026, with incentives aimed at encouraging investment in sustainable financial instruments.
Ogi Prastomiyono, OJK’s chief executive overseeing insurance, guarantee institutions and pension funds, said the regulator had issued a rule granting relief in risk-based capital calculations when firms in those sectors buy sustainable financial instruments.
The roadmap covers 2026-2030 and assigns the industries two main roles, Ogi said. They are expected to provide protection against risks associated with sustainable projects and are encouraged to invest in sustainable financial products. OJK hopes the incentives will increase purchases of instruments linked to a sustainable green economy.
Sustainable instruments are not yet the sectors’ main investment choice. The 2024 figures cited showed government securities remained the largest investment category, accounting for Rp741.30 trillion, or about 46.86 per cent, of insurance-sector investments.
Guarantee institutions held Rp15.66 trillion in government securities, representing 52.85 per cent of their investments. Pension funds’ holdings stood at Rp136.57 trillion, or about 36.77 per cent of their investment portfolios.
