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17 Regulation Insurance in Indonesia People Should Know

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For those of you who are currently and want to make insurance claim whether it be a life insurance, health, education and so forth, certainly you must know in detail how the benefits and claims process later.

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After the claim period has arrived, you will be troubled with a variety of reasons that are very disappointing. It’s good to avoid such things and select an insurance product that has a good name and trusted by the government.

First this is the general definition of an insurance, insurance or coverage is an agreement by which an insurer binds himself to an insured, accepting a premium, for reimbursement to him for a damage or loss of expected profit which he may suffer from an event that is not necessarily.

In our own country, there is an insurance regulation that is regulated and stipulated by an applicable law. Thus this should not be violated and certainly, the punishment will be very heavy and firm.

We also need to know some regulations regarding the applicable insurance. To know the insurance regulations in Indonesia, here is the following explanation:

  •  Act Number 2 of 1992 concerning Insurance Business :

Discusses the types of an insurance business and various types and legal entities that bind. Example: Chapter IV concerning the Business scope of insurance Company and Chapter VI concerning Binding law of insurance business.

  •  Government regulations :

1. Government Regulation Number 81 the Year 2008, regarding the implementation of Insurance (1) The Insurance Company must have its own capital as referred to in Article 6A paragraph (1) with the following stages:

a. a minimum of Rp40,000,000,000.00 (forty billion rupiahs) no later than December 31, 2010; and

b. a minimum of Rp200,000,000,000.00 (two hundred billion rupiahs) by December 31, 2014. “

2. Government Regulation Number 39 of 2008, Concerning the Second Amendment to Government Regulation Number 73 of 1992 on the Implementation of Insurance Business.

3. Government Regulation Number 63 the Year 1999, regarding the requirements of paid-up capital for the new establishment of an Insurance or Reinsurance Company, Requirements to obtain a business license for an Insurance Brokerage Company, Requirements to obtain a business license for an Appraiser of Losses, an Actuarial Consultant Company and an Insurance Agent in the form of a legal entity and an Insurance and Reinsurance Company making ownership changes beyond ownership.


4. Government Regulation No. 73 of 1992, regarding general provisions of insurance, insurance objects, licensing insurance companies, financial health, financial administration until the sanctions are complete.

  • Ministerial Decree :

a. PMK No. 152/PMK.010/2012, regarding Good Corporate Governance for Insurance Companies.

b. PMK No. 55/PMK.010/2012, regarding Amendment to Finance Minister Regulation no. 79 / PMK.010 / 2011 about the Financial Health of the Organizer Body of Old age savings program savings Program.

c. PMK No. 53/PMK.010/2012, about the financial health of insurance companies and reinsurance companies.

d. PMK No. 79/PMK.010/2011, regarding the financial health agency organizers savings program Old Age Civil Servants.

e. PMK No. 11/PMK.010/2011, about Financial Health Insurance Business and Reinsurance Business With Sharia Principles.

f. PMK No. 01/PMK.010/2011, concerning Amendment to Regulation of the Minister of Finance No. 74 / PMK.010 / 2007 Concerning the Implementation of Insurance Coverage on the Business Line of Motor Vehicle Insurance.

g. PMK No. 168/PMK.010/2010, about Insurance Company Inspection.

h. PMK No. 30/PMK.010/2010, about the Implementation of Know Your Customer Principles for Non-Bank Financial Institutions.

i. PMK No. 18/PMK.010/2010, about the Basic Principles of Operating Insurance and Reinsurance Business With Sharia Principles.

j. PMK No. 79/PMK.010/2009, about Administrative Sanctions in the form of Fines and Procedures Billing Against Insurance Company, Reinsurance Company, or Insurance Business Supporting Company.

k. PMK No. 158/PMK.010/2008, about the Second Amendment to Decree of the Minister of Finance No. 424 / KMK.06 / 2003 on Financial Health Insurance Companies and Reinsurance Companies.

l. PMK No. 124/PMK.010/2008, about the Implementation of Business Lines of Credit and Suretyship Insurance.

m. PMK No. 36/PMK.010/2008, about Big Benefits and Mandatory Donations of Road Traffic Accident Funds.

n. PMK No. 37/PMK.010/2008, with Big Compulsory Benefits and Compulsory Fund Mandatory General Passenger Accident Passenger On Land, River, Sea and Air.

o. PMK No. 78/PMK.05/2007, about the Assessment of Ability and Precision for Directors and Commissioners of Insurance Companies.

p. PMK No. 74/PMK.010/2007, about the Implementation of Insurance Coverage on Motor Vehicle Insurance Business Line.

q. KMK No. 423/KMK/2003, about Insurance Company Inspection.

  • Regulation / Letter of Decision of Director-General :

a. Regulation of Chairman of Bapepam-LK Number: PER-07 / BL / 2012, about Reference Pure Premium Elements And Other Elements Of Administration Cost And Other General Cost On Motor Vehicle Insurance Business Line In 2013.

b. Regulation of Chairman of Bapepam-LK Number: PER-08 / BL / 2012, about the Risk-Based Minimum Capital Risk Guideline for Insurance Companies and Reinsurance Companies.

c. Regulation of Chairman of Bapepam-LK Number: PER-07 / BL / 2011, about guidelines on calculating the amount of funds required to anticipate the risk of loss of Tabarru funds management and calculating the amount of funds to be provided by Companies to anticipate possible loss risks arising in the implementation of insurance and reinsurance business with Sharia principles.

d. Regulation of Chairman of Bapepam-LK Number: PER-04 / BL / 2011, about reference pure Premium elements and other elements of administration costs and other general costs in a motor vehicle insurance business line 2011.


  • OJK Regulations :

a. POJK No. 17/POJK.05/2017, about POJK on Procedures and Procedures for Imposing Administrative Sanctions in Insurance and Wealth Insurance Company Insurance, Sharia Insurance Company, Reinsurance Company, and Sharia Reinsurance Company.

b. POJK No. 23/POJK.05/2015, about POJK on Insurance Products and Insurance Product Marketing.

c. POJK No. 28/POJK.05/2015, about POJK on Dissolution, Liquidation, and Insolvency of Insurance Companies, Sharia Insurance Companies, Insurance Companies, and Sharia Insurance Companies.

d. POJK No. 4/POJK.05/2013, about POJK on Assessment of Ability and Precision for Major Parties of Insurance Companies, Pension Funds, Financing Companies, and Guarantee Companies.

  • Letter of Circulation of OJK :

a. No. 27/SEOJK.5/2017, about circular Letter of the Financial Services Authority Number 27 / SEOJK.05 / 2017 on Guidelines for the Establishment of Technical Reserves for Insurance Companies and Reinsurance Companies.

b. No. 27/SEOJK.5/2017, about Circular Letter of the Financial Services Authority Number 26 / SEOJK.05 / 2017 on Approval of Investment Placement and Non-Investment in Insurance Company, Reinsurance Company, Sharia Insurance Company and Sharia Reinsurance Company.

c. No. 27/SEOJK.5/2017, about SEOJK on Fraud Control, Implementation of Anti Fraud Strategy, and Anti Fraud Strategy Report for Insurance Company, Sharia Insurance Company, Reinsurance Company, Sharia Reinsurance Company, or Sharia Unit.

In Indonesia itself, Insurance companies have several types listed in the OJK (Financial Services Authority), including:

  1. General insurance 76 company.
  2. Life insurance 50 company.
  3. Insurance required 3 company.
  4. Social insurance 2 company.
  5. Reinsurance 6 company.

Indeed many insurances offered in Indonesia, all have advantages and disadvantages of each  each. You should be able to choose which insurance suits the desired category. So the money that has been issued can be used properly, and no difficulty at the time of making the disbursement or claim later.

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Hopefully, the above dispensation on insurance regulations in Indonesia can clarify you to choose insurance and not to be afraid of the availability of rules and regulations. This might be useful to you.

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