Discounted Work Accident Insurance (JKK) and Life Insurance (JKM) premiums were among the eight acceleration programmes that made up the economic stimulus package the Indonesian government dropped in 2025.
In 2026, the JKK and JKM will be continued, said the Financial System Stability Committee (KSSK) said in a press release.
Additionally, the KSSK released figures of the Insurance, Guarantee and Pension Fund (PPDP) Industry, where insurance industry assets as of September 2025 stood at IDR1,181.21tn ($70.74bn), representing a 3.39% y-o-y increase.
The KSSK noted that in general, the capitalisation of the commercial insurance industry remained solid, with the life insurance, general insurance and reinsurance sectors reporting aggregate risk-based capital ratios of 481.94% and 326.38%, respectively, well above the 120% threshold.
The Indonesia Deposit Insurance Corporation (LPS) continues to foster effective bank management and prepare for the insurance policy guarantee programme. During the 2024-2025 period, 26 (sharia) rural banks were placed under LPS, of which 23 were liquidated, one was rescued through a bail-in scheme, and two remain in the resolution process.
In accordance with its new mandate, LPS is intensifying preparations for implementing the insurance policy guarantee programme, with activation expected before 2028.