OJK Backs Mandatory Insurance for Foreign Tourists

Enhanced Protection and Market Growth

The Financial Services Authority (OJK) has expressed support for making insurance mandatory for foreign tourists entering Indonesia. Ogi Prastomiyono, OJK's Head of Insurance, Pension Fund, and Guarantee Supervision, emphasized that while the implementation requires coordination with various government agencies, particularly those in tourism and immigration sectors, OJK is fundamentally in favor of the policy.

Rationale Behind the Proposal

The proposed mandatory insurance policy is designed to serve two primary objectives: strengthening risk protection for tourists and driving the growth of the insurance market through market extensification. Ogi highlighted that the implementation needs careful consideration of ecosystem readiness, implementation mechanisms, and consumer protection aspects to ensure effectiveness and sustainability.

Industry Analysis and Future Plans

OJK is currently analyzing business plans submitted by insurance companies for 2026, including premium growth projections, product development directions, and capital readiness. The regulator found that these plans generally reflect measured optimism while maintaining prudence. The insurance industry, led by the Indonesian Insurance Council (DAI), has been coordinating with various stakeholders, including legislators and regulators, to push this initiative forward.

Implementation Considerations

The proposal suggests that foreign tourists could purchase insurance at visa on arrival (VoA) booths upon entering Indonesia, similar to the requirements often imposed on travelers entering other countries. This initiative is still in the planning stages and requires further discussion and feasibility testing. The insurance industry believes that making travel insurance mandatory for visitors could enhance protection for tourists while creating new business opportunities for Indonesian insurance providers.