Indonesia's Export Growth Not Reflected in Marine Cargo Insurance Premiums

Stable Premiums Despite Rising Exports

Indonesia's export value grew by 8.14% year-on-year until September 2025, reaching US$209.80 billion, according to the Central Statistics Agency (BPS). However, this growth has not translated into increased marine cargo insurance premiums. The Indonesian General Insurance Association (AAUI) reported that marine cargo premiums remained relatively stable at Rp2.77 trillion in Q2 2025, compared to Rp2.78 trillion in the same period last year.

Factors Affecting Marine Cargo Insurance

AAUI Chairman Budi Herawan identified several factors contributing to this discrepancy: high competitive tariffs, self-insurance practices among some exporters, and international shipments still using policies from abroad. These factors have limited the growth of marine cargo insurance premiums despite the overall increase in export values.

Future Outlook and Recommendations

Despite current challenges, AAUI expects marine cargo insurance premiums to increase in Q3 2025, following the trend of rising national export values. To achieve this growth, AAUI suggests that insurance companies should strengthen partnerships with exporters, shipping companies, and freight forwarders. Additionally, leveraging digital insurance systems could expedite policy issuance and claims processing.

Challenges and Opportunities

The marine cargo insurance sector faces several challenges, including intense tariff competition in the international market, adoption of CIF/FOB contracts that often place insurers abroad, and fluctuations in logistics costs and global shipping routes. Moreover, there's a need to improve awareness among small exporters about the importance of cargo insurance through broader literacy and socialization.

Growth Prospects

AAUI remains optimistic about the future, predicting that marine cargo performance will remain stable until end-2025 and potentially grow in 2026-2027. This growth is expected to be driven by the recovery of global trade and increased export activities of mineral downstream products and manufactured commodities. Government support in the logistics and shipping sectors is also seen as a positive factor that could contribute to the growth of marine cargo premiums in the coming years.