Jakarta – Indonesia’s insurance industry is currently in a condition that requires vigilance, although it remains under control. The Financial Services Authority (OJK) has classified the sector’s status as “normal alert,” amid challenges of slowing growth and unabated global pressures.
This was stated by OJK Commissioner Ogi Prastomiyono at the “Non-Bank Financial Forum 2025” event organized by Infobank Media Group at the Hotel Indonesia Kempinski in Jakarta on Friday, August 1, 2025.
“The current status of the insurance sector is normal alert. It is still under control, but requires special attention, especially in addressing the impacts of geopolitical developments and global economic dynamics,” said Ogi.
Insurance asset growth as of June 2025 has only reached 2.58 percent year-to-date, far below the OJK’s annual projection of 6 to 8 percent. Slowdown is also evident in premium growth, which has only increased by 0.65 percent year-on-year.
Despite this, the OJK has not lowered its growth targets and remains optimistic that the second half of the year will mark a recovery for the industry.
In this context, the OJK has taken decisive steps to strengthen oversight and enhance transparency in the sector.
One of its initiatives is the launch of an insurance agent database, which allows the public to verify the legality of agents through official registration numbers and QR codes. With this system, consumers are better protected from harmful sales practices.
On the investment supervision side, OJK also launched a digital system called PRIME, which enables real-time monitoring of all insurance company investment activities.
Through PRIME, authorities can clearly see the allocation of funds, the parties involved in transactions, and whether investment practices are carried out in a healthy and accountable manner.
“This is important to prevent investment abuse,” explained Ogi.
Towards Policy Guarantee 2028
Additionally, the OJK is preparing a policy database to support the policy guarantee program, a major initiative set to be implemented in 2028. This effort is believed to enhance public confidence in the insurance industry.
According to Ogi, these various steps are part of a comprehensive transformation aimed at improving governance, transparency, and the resilience of the national insurance industry.
He emphasized that the OJK cannot work alone and urged all industry players to collaborate in strengthening a healthy and sustainable insurance ecosystem.
“We must undergo this transformation together. The theme we are promoting remains the same: ‘Stronger Together!’” he concluded. (*) Alfi Salima Puteri
