The Chairman of the Indonesian General Insurance Association (AAUI), Budi Herawan, confirmed that the general insurance sector plans to expand microinsurance offerings in 2026.
He emphasised that this initiative is not merely a business opportunity, but a strategic effort to enhance protection for small businesses across Indonesia.
Budi noted that the prospects for microinsurance growth are increasingly favourable, thanks to support from the government, particularly the Ministry of Cooperatives and SMEs.
“We are actively promoting this because the Ministry of MSMEs, especially its deputy, has opened the door,” Mr Budi told reporters.
He also highlighted that the push for microinsurance has been strengthened through AAUI’s participation in various initiatives with business stakeholders, including partnerships with the Retail Entrepreneurs Association.
Mr Budi clarified that the microinsurance product developed by AAUI is separate from government programs such as the People’s Business Credit (KUR). Rather, it is designed to offer comprehensive protection for small business owners, helping them sustain operations in the event of disasters or asset damage.