Indonesia’s OJK introduced new insurance regulations

Indonesia’s Financial Services Authority (OJK) has started to implement a series of new regulations issued at the end of 2024 to enhance the private insurance sector and accelerate the utilization of digital technologies. Reporting requirements for insurance companies were fine-tuned through OJK Regulation No.22 of 2024 (POJK 22/2024) which increases reporting frequency, centralizes critical reports and introduces new penalties for misleading information.
OJK Regulation No. 34 of 2024 (POJK 34/2024) regulates human resource upskilling and mandates at least 3.5% of employee expenses to go towards training and certification programs. Additionally, OJK Regulation No. 36 of 2024 (POJK 36/2024), which applies to insurance and reinsurance companies including sharia entities, introduces regulations allowing digital insurance services and includes provisions on mandatory agency certification and registration.
Indonesia’s life and non-life insurance sector is expected to grow at a compound annual growth rate (CAGR) of 4.65% and forecasted to reach a market size of about USD48 billion by 2030. Anticipating this rapid growth, OJK has subsequently planned phased increases of minimum equity requirements, set for 2026 and 2028, designed to further strengthen the sector’s financial stability.