Indonesia's Financial Services Authority (OJK) Chief Executive for Insurance, Guarantee, and Pension Fund Supervision Ogi Prastomiyono highlighted the need to strengthen the country's insurance sector due to persistently low penetration rates.
Speaking at the CNBC Indonesia Insurance Forum 2025 on July 14, he noted that insurance penetration in Indonesia stands at just 3%, indicating a substantial gap in protection coverage.
“Our joint efforts with industry associations are focused on deepening the insurance market,” he said.
“Many insurance products in Indonesia have yet to be fully implemented or adopted. There are insurance products widely implemented internationally that have yet to take root in Indonesia,” he said, CNBC Indonesia reported.
Mr Ogi noted that the OJK has already conducted product evaluations in key areas including investment-linked insurance (PAYDI), credit insurance, and health insurance—all of which, he said, require significant improvements in structure and performance.
On the development front, OJK is also coordinating with the government to push forward new offerings such as Third Party Liability (TPL) insurance but is still awaiting official responses. “This is all part of the extension process,” Ogi explained.
For programme intensification, the OJK is placing emphasis on better risk management, improved product distribution methods and the presence of qualified actuaries to ensure greater efficiency and effectiveness across the sector.