Insurance Uncertainty Surrounds Alfamart Looting in Sumatra

Varied Insurance Coverage for Retail Outlets

The recent looting of Alfamart stores in Sibolga, Sumatra Utara, following severe flooding and landslides has brought attention to the insurance coverage for such events. Solihin, Chairman of the Indonesian Retail Entrepreneurs Association (Aprindo), explained that there is no standard insurance policy that covers riots or looting for modern retail businesses.

Case-by-Case Insurance Assessment

Each Alfamart store has its own insurance agreement between the store owner and the insurance company, resulting in different levels of coverage. Solihin emphasized that insurance policies typically include exceptions, and whether looting is covered depends on the specific terms of the policy. "It depends on whether the store owner has insurance or not. Insurance policies always have exceptions, so whether looting is included or excluded is not always clear," Solihin explained.

Business-to-Business Insurance Arrangements

The relationship between retail stores and insurance companies operates on a business-to-business (B2B) model, meaning that the coverage can vary significantly between different locations. For instance, while natural disasters like floods are usually covered, extraordinary events such as riots or looting might not be included in standard policies.

Insurance Company Discretion

Insurance companies also reserve the right to assess whether they will cover events deemed unpredictable or outside normal circumstances. "Insurance companies typically require a proposal for the coverage they provide," Solihin noted, highlighting the case-by-case nature of these assessments.

Background: Looting Incidents

The looting occurred not only at Alfamart and Indomaret stores but also at a Bulog warehouse in Sibolga. Residents, isolated since November 25, 2025, broke into the warehouse, taking essential supplies like rice and cooking oil. Bulog's regional head for North Sumatra, Budi Cahyanto, acknowledged the dire situation, stating that the community was in an emergency state due to the disaster.