Indonesia Considers Mandatory Travel Insurance for Foreign Tourists

Proposal to Enhance Tourism Sector

The Indonesian Insurance Council (DAI) has proposed implementing mandatory travel insurance for foreign tourists visiting Indonesia. This initiative aims to boost tourist confidence while providing comprehensive risk protection. According to Wahju Rohmanti, an insurance expert and former head of investment at an insurance company, this policy is viewed positively as it aligns with international practices.

International Precedents and Implementation

Many countries have already implemented similar requirements for foreign visitors. For instance, Schengen countries in Europe mandate travel insurance as a primary requirement for obtaining a Schengen visa. Thailand has also recently introduced mandatory health and travel insurance for foreign tourists. The Thai Ministry of Public Health suggested that the insurance coverage cost could be included in the visa fee or added to flight ticket prices.

Industry and Regulatory Perspectives

Wahju Rohmanti emphasized that the insurance coverage should be detailed, specifying whether it includes accident risk, loss, or life insurance. He believes that as long as the insurance cost remains reasonable, it won't deter tourists but rather enhance their confidence in visiting Indonesia. The Financial Services Authority (OJK) has expressed support for the proposal, highlighting its potential to strengthen risk protection for tourists and drive insurance product development through market extensification.

Implementation Challenges

Ogi Prastomiyono, Head of Insurance, Guarantee, and Pension Fund Supervision at OJK, noted that implementing mandatory travel insurance would require cross-sector coordination involving various government agencies and institutions, particularly those in tourism and immigration. While OJK supports the policy in principle, the exact implementation details and cost structure remain under discussion.

Potential Impact on Tourism

Experts believe that mandatory travel insurance could become a value-added feature for Indonesia's tourism sector. By providing assurance against potential risks, Indonesia can attract more visitors while enhancing their travel experience. The insurance requirement is seen as a measure that could differentiate Indonesia's tourism offerings and potentially increase tourist arrivals.