OJK Strengthens Insurance Regulation with New Asset Management Rules

Enhanced Financial Stability Measures

The Financial Services Authority (OJK) has introduced new regulations (POJK 26/2025) focusing on the management of assets and liabilities for insurance and reinsurance companies. This regulatory update aims to strengthen financial governance and enhance risk management practices within Indonesia's insurance sector ¹

Industry Compliance Status

As of October 2025, OJK reports that 77.8% (112 out of 144) insurance and reinsurance companies have successfully met the minimum equity requirement set for 2026. This compliance rate indicates significant progress in the industry's preparation for the new regulatory framework ²

Expanded Investment Opportunities

The new regulation is designed to not only strengthen the financial foundation of insurance companies but also to promote deeper financial markets in Indonesia. By allowing for a broader range of investment instruments, OJK aims to create more opportunities for investment while maintaining strict oversight ¹

Regulatory Context and Implementation

This regulatory development is part of OJK's broader efforts to enhance the financial services sector. The introduction of POJK 26/2025 follows previous regulations, such as POJK 23/2023, which set the stage for the current minimum equity requirements. The implementation of these rules demonstrates OJK's commitment to creating a more robust and resilient insurance industry ²

Natural Disaster Insurance Considerations

The recent natural disasters in Indonesia have highlighted the importance of robust insurance practices. OJK has been exploring the implementation of mandatory disaster insurance, as mandated by Law No. 4/2023 on Financial Sector Development. This potential new scheme would provide better protection for homeowners against natural disasters, given Indonesia's geographical vulnerability ⁴

Credit Relief Measures and Oversight

In response to recent flooding, OJK has introduced credit relief measures for affected debtors. Chief Economist Josua Pardede of Bank Permata has emphasized the need for strengthened OJK oversight to prevent misuse of these relief measures. The proposed oversight includes rigorous verification processes, realistic restructuring plans, and detailed reporting requirements ³