Indonesian Insurance Sector Shows Progress in Meeting New Equity Requirements

Significant Compliance Achieved

The Financial Services Authority (OJK) has reported that 79.86% of insurance and reinsurance companies operating in Indonesia have successfully met the new minimum equity requirements set for 2026. As of November 2025, 115 out of 144 companies have achieved compliance with the regulations outlined in OJK Regulation No. 23/2023 ¹

New Equity Thresholds

The regulation mandates significant increases in minimum equity requirements across different categories of insurance companies:

• Conventional insurance companies: Rp250 billion (up from Rp150 billion)
• Islamic insurance companies: Rp100 billion
• Reinsurance companies: Rp500 billion
• Islamic reinsurance companies: Rp200 billion

Industry Status and Future Outlook

While the compliance rate is promising, 29 companies remain non-compliant as of the latest reporting period. Ogi Prastomiyono, Head of Insurance, Guarantee and Pension Fund Supervision at OJK, expressed optimism that more companies will meet the requirements by the end of 2026 ¹

Market Performance Context

The Indonesian insurance market has shown positive growth trends:

• Total commercial insurance assets reached Rp971.22 trillion by November 2025, representing a 7.49% YoY growth
• Commercial insurance premiums totaled Rp297.88 trillion, showing a 0.41% YoY growth
• Insurance claims reached Rp197.33 trillion, representing a 4.64% YoY contraction

Regulatory Impact

The new regulations represent a significant strengthening of the insurance sector's capital requirements, aiming to enhance industry stability and consumer protection. The OJK continues to monitor compliance closely and expects the compliance rate to improve further as the deadline approaches ²