The Financial Services Authority (OJK) has observed that the health insurance sector's penetration rate remains stagnant at below 3%, showing no significant growth.
OJK chief executive for insurance, guarantee and pension fund supervision Ogi Prastomiyono noted that the industry continues to face persistent pressures from both domestic and global factors. As a result, the penetration rate has stayed under 3% for the past decade. “The penetration rate is still under 3% and its growth has not outpaced our economic growth. So, for the past 10 years, it has remained stagnant below 3%,” he stated recently at the Danareksa Tower on Sunday (July 27, 2025), reported a local news site.
Mr Ogi said Indonesia was ranked fifth in economic growth in the first quarter of 2025.
"However, significant challenges persist in the national insurance industry, particularly the wide protection gap, which reflects the low level of insurance coverage among the population," he said. He added that the industry has recently been dealing with rising medical inflation, resulting in a spike in claims. Additionally, around 40% of insurance premiums are being directed to foreign companies.
Data collected by the OJK states the level of financial literacy of the Indonesian people is at 45% while financial inclusion has reached 28.5%.