Indonesia's state insurer consolidation seen having little effect on policy scheme
LPS says participation in its planned policy guarantee programme will depend on which companies conduct insurance business, rather than their holding structures.
Indonesia's planned consolidation of state-owned insurers into several holding companies is unlikely to significantly affect participation in its forthcoming policy guarantee programme, according to the Indonesia Deposit Insurance Corporation (LPS).
Ferdinan D. Purba, LPS board commissioner for the policy guarantee programme, said membership would be determined by the entities conducting insurance business and issuing policies, rather than parent companies. He spoke at an LPS media gathering in Badung, Bali, on 18 October 2026.
Ferdinan said the consolidation would group state-owned insurers into holding companies according to similarities in their businesses. Such structural changes would not automatically alter how programme membership is determined.
He cited Indonesia Financial Group (IFG), whose subsidiary IFG Life conducts life insurance business. IFG itself does not directly issue policies. He compared the approach with deposit guarantees, which relate to the banks accepting deposits and issuing deposit products.
Consolidation could nevertheless raise separate issues if an insurer within a holding company encountered problems, Ferdinan said. Coordination between LPS and the parent would then be important because the holding company is a shareholder. He said this concerned the resolution of troubled insurers, not eligibility for programme membership.
