LPS to Implement Insurance Policy Guarantee Program by 2028

Enhanced Financial Safety Net

The Indonesian Deposit Insurance Corporation (LPS) is accelerating the implementation of the Insurance Policy Guarantee Program (PPP), targeting activation before 2028. This program represents a significant enhancement to Indonesia's financial safety net, providing additional protection for policyholders across both conventional and sharia insurance products.

Implementation Timeline and Coordination

According to Ferdinan D. Purba, Member of the LPS Commissioners Board for the Insurance Guarantee Program, LPS is currently finalizing implementation policies and resolution frameworks for insurance companies. The agency is working closely with the Financial Services Authority (OJK) to establish the Integrated Information Exchange System (SAPIT), which is expected to go live in 2025. This system will be crucial for data exchange between LPS and OJK, facilitating effective monitoring and regulation.

Registration and Compliance

Insurance companies are expected to begin registration for the PPP in Q3 2026, provided all prerequisites are met. This registration process will be a critical step in ensuring that insurance products are covered under the guarantee program, thereby enhancing consumer confidence in the insurance sector. The successful implementation of PPP will mark a significant milestone in strengthening Indonesia's financial sector resilience.