With general insurance premiums in Indonesia experiencing a slowdown, the Indonesian General Insurance Association (AAUI) is encouraging an increase in premiums in the hope that growth can reach 8%. This was one of the topics of discussion during the 29th Indonesia Rendezvous forum held by AAUI in Bali on October 15-17, 2025.
According to an official statement, AAUI Chairman Budi Herawan said that the industry still has to work hard to achieve its premium growth target of 8% this year. He said that in addition to liquidity and equity challenges, the general insurance industry still faces efficiency issues that need to be addressed immediately in order to restore public confidence.
The issue of strengthening capital became one of the main highlights of the Rendezvous. "The issue of one of the second equity is how to lift and improve the general insurance industry, which is still less efficient. Our hope is that there is a solution and of course restore confidence, "said Mr Herawan.
The Chief Executive of the Supervisory of Insurance, Assurance, and Pension Fund of OJK Ogi Prastomyono said the Regulation of the Financial Services Authority (POJK) Number 23 of 2023 set a firm deadline of 2026 to 2028. This regulation is not just an increase in capital, but part of the industrial consolidation step. "For companies that are not able to meet capital requirements, the choice available is to find additional capital or merge with other companies," he said.
This regulation was also followed by OJK Circular Letter on the clustering of equity-based businesses (KPPE), which grouped the company based on capital power. This clustering will determine the business line and the risk capacity that each company can handle.
In addition to capital regulation, the insurance industry is also faced with the application of international accounting standards PSAK 117 (adoption of IFRS 17), which officially comes into force. This standard is fundamentally changing the way companies calculate revenue and liabilities.
Responding to this double regulatory pressure, AAUI encourages insurers to accelerate the digitalization process that not only improves operational efficiency but also opens up opportunities for new business models that are more sustainable and profitable as well as strengthening competitiveness.
Meanwhile, cross-sector collaboration is expected to expand market penetration as well as strengthen the resilience of the industry collectively. According to AAUI, these efforts are no longer optional, but rather part of an important mandate that must be implemented to ensure the insurance industry remains a strategic support for the national economy amid increasingly restrictive global regulatory oversight.