Indonesia bumps up minimum equity requirement amidst financial dilemma: Report

The new rules also require a minimum investment of IDR1t for starting new insurance businesses.

Indonesia has increased the minimum equity requirement for insurance companies to IDR250b ($16.1m) by 2026, a 67% hike from the earlier IDR150b, in response to recent policy defaults, Reuters reported.

The Financial Services Authority (OJK) announced plans to further raise this minimum to between IDR500b and IDR1t by 2028.

This decision aims to bolster the sector's resilience and stability against economic crises.

The change follows financial difficulties faced by several insurance firms, including state-owned Asuransi Jiwasraya, military officers' insurer Asabri, and one of the oldest insurers, Bumiputera, due to a surge in unpaid claims.

ALSO READ: Tugu Reasuransi Indonesia to remain ‘stable’: Fitch Ratings

The new rules also require a minimum investment of IDR1t for starting new insurance businesses.

Additionally, the OJK has increased the minimum capital for reinsurance firms to IDR500b for 2026, with plans to raise it to IDR2t by the end of 2028, up from the previous IDR300b requirement.

Also Read

FWD Philippines targets gamer insurance gaps

Korean construction insurer maintains strong capital

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit