OJK Monitors Islamic Insurance Spin-off Progress as 2026 Deadline Approaches

Regulatory Compliance Efforts Continue Through 2025

The Financial Services Authority (OJK) has confirmed that the process of separating Islamic business units (spin-off) in the insurance industry remains ongoing through 2025. This development follows the implementation of OJK Regulation No. 11/2023, which mandates that all Islamic insurance units must complete their spin-off by the end of 2026. As of the end of 2025, six Islamic business units remain in the spin-off process.

OJK's Oversight and Implementation

Ogi Prastomiyono, Executive Head of Insurance, Pension Funds, and Guarantee Supervision at OJK, provided updates on the progress, emphasizing the authority's commitment to ensuring compliance with the regulation. The OJK continues to monitor the situation closely as the deadline draws near, maintaining its supervisory role in the industry's restructuring.

Significance of the Spin-off Regulation

The spin-off regulation is a significant step in developing Indonesia's Islamic finance sector, aiming to enhance transparency, governance, and the overall growth of Islamic insurance products. The OJK's active oversight underscores its dedication to maintaining a robust regulatory framework that supports both industry growth and consumer protection.