Indonesia's Marine Cargo Insurance Premiums Decline Amidst Export Growth

Export Value Increases but Insurance Premiums Show Marginal Decline

Indonesia's export value reached US$209.80 billion through January-September 2025, marking an increase of 8.14% compared to the same period last year. However, the growth in export activities did not translate into higher marine cargo insurance premiums. Instead, the Financial Services Authority (OJK) reported a slight decrease of 0.74% in marine cargo insurance premiums to Rp5.33 trillion as of September 2025.

Factors Contributing to the Decline in Premiums

Several factors have been identified as contributing to the decline in marine cargo insurance premiums despite the growth in exports. The Indonesian General Insurance Association (AAUI) highlighted that high competitive tariffs in the industry have played a role. Additionally, some exporters practice self-insurance, reducing their reliance on external insurance policies. Furthermore, a portion of international transportation is still covered by policies issued abroad, which also affects the premium income within the country.

Industry Performance and Observations

The AAUI reported that marine cargo premiums remained relatively stable at Rp2.77 trillion as of the second quarter of 2025, compared to Rp2.78 trillion in the same period the previous year. PT Asuransi MSIG Indonesia also experienced a slight decrease in Gross Written Premium (GWP) for marine cargo, with a reduction of around 0.5% to 0.6% year-on-year as of the third quarter of 2025. Despite this, the company noted that the marine cargo portfolio remains strong, contributing approximately 9.5% to MSIG Indonesia's total portfolio.

Sectoral Export Performance

The Central Statistics Agency (BPS) provided further insights into Indonesia's export performance. The export value of non-oil and gas sectors recorded a significant increase of 9.57% to US$199.77 billion. In contrast, the export value of oil and gas decreased by 14.09% to US$10.03 billion during the same period. This divergence highlights the growing importance of non-oil and gas exports in Indonesia's overall export landscape.