Indonesia targets July 2027 launch for insurance policy guarantees
Insurers would need to meet financial health requirements before joining, with phased registration planned for firms not initially eligible.
Indonesia’s deposit insurer, LPS, is targeting July 2027 to activate an insurance policy guarantee programme, ahead of the legal deadline of before 2028. Preparations are focused on operational arrangements, particularly the rules governing insurer participation.
Ferdinan D. Purba, an LPS board member responsible for the policy guarantee programme, outlined the target at a media gathering in Badung, Bali, on 18 October 2026. The preparations follow the mandate under Law No. 4 of 2023 on financial sector development and strengthening.
Under the proposed design, conventional and sharia insurers providing general or life insurance would join the programme, rather than members of the public directly. Social insurance, compulsory insurance programmes and reinsurance would be excluded.
Although the law requires insurers to participate, admission would not be automatic, Ferdinan said. Companies would first have to meet financial health requirements set by LPS in coordination with OJK, using each insurer’s risk-based capital calculation. He said the conditions were intended to limit the risk of participant failures during the programme’s initial implementation.
Suwandi, LPS executive director for insurance surveillance, examination and information, said the agency had prepared a phased registration arrangement for insurers that might not initially qualify. Those companies would be given time to strengthen their finances and operational readiness, allowing registration to proceed in line with industry preparedness.
