OJK Encourages Insurance Industry to Support Government Programs

Insurance Sector Collaboration with Government Initiatives

The Financial Services Authority (OJK) is promoting greater involvement of the insurance industry in various government programs while ensuring that risk capacity is properly managed. Ogi Prastomiyono, Head of Executive Supervisor for Insurance, Guarantee, and Pension Funds at OJK, emphasized that the insurance sector is prepared to support government initiatives through effective risk protection mechanisms.

Proposed MBG Insurance Program

The OJK is currently exploring the development of an insurance product for the government's Free Nutritious Meal (MBG) program. The proposed insurance coverage aims to address various risks associated with the program's implementation, including food poisoning risks for recipients such as school children, toddlers, pregnant women, and lactating mothers. Additionally, the insurance is expected to cover accidents involving parties responsible for program implementation, such as the Indonesia Development Drivers (SPPI) and Nutrition Fulfillment Service Units (SPPG).

Key Considerations for MBG Insurance

Ogi Prastomiyono highlighted that the premium for the MBG insurance is expected to be manageable, ensuring that the protection against potential risks can be effectively implemented. The OJK is working to ensure that the insurance product adds value to the ecosystem rather than merely generating premiums.

Current Status of MBG Insurance Product

According to Iwan Pasila, Deputy Commissioner for Insurance Supervision, Guarantee, and Pension Funds at OJK, the MBG insurance product is still in the initial proposal stage. The government is currently discussing the scope of coverage and other critical details of the insurance product. The OJK is yet to finalize the mechanism and the companies that will be involved in underwriting the risks associated with the MBG program.