Indonesia is assessing a proposal that would require foreign tourists to have mandatory travel insurance when visiting the country, a move aimed at strengthening visitor protection and supporting the sustainability of the national tourism sector.
The Financial Services Authority (OJK) confirmed that the policy is still under review and requires coordination across multiple government bodies, particularly those overseeing tourism and immigration. Authorities stressed that the proposal is not intended to benefit specific insurance providers, but rather to improve risk management and protect international visitors from unexpected events such as medical emergencies, accidents, or travel disruptions.
OJK Executive Head of Insurance, Guarantees, and Pension Funds Supervision Ogi Prastomiyono emphasized that the initiative is focused on long-term ecosystem resilience rather than commercial interests.
“OJK views that the plan for mandatory travel insurance for foreign tourists is essentially aimed at protecting tourists and managing risks, as well as supporting the strengthening of Indonesia’s tourism ecosystem, not to benefit certain parties,” he said on Tuesday, 27 January 2026, as reported by Kumparan.
If adopted, the policy would be implemented under the principles of Indonesia’s Financial Sector Development and Strengthening Law, ensuring open and fair competition. OJK noted that all qualified insurance companies—both domestic insurers and joint ventures—would have equal opportunities to participate, helping to prevent market concentration while expanding coverage options for travelers.
Consumer protection remains a key consideration in the review process. OJK has highlighted the need to assess ecosystem readiness, pricing mechanisms, claims procedures, and regulatory oversight to ensure the policy can be implemented effectively and sustainably. Proper coordination is seen as essential to avoid creating additional barriers for tourists while enhancing safety standards.
Alongside the policy discussion, OJK reported that Indonesia’s insurance industry remains financially stable, supported by strong capital and solvency levels. As of October 2025, total assets in the insurance sector reached approximately USD 72.3 billion, reflecting year-on-year growth of over 5%. Commercial insurance assets accounted for about USD 58.9 billion, growing more than 6% annually.
From January to October 2025, total insurance premiums amounted to roughly USD 16.5 billion, showing modest annual growth. Life insurance premiums declined slightly to around USD 9.0 billion, while general insurance and reinsurance premiums increased to approximately USD 7.5 billion, indicating stronger performance in non-life coverage.
Earlier data through November 2025 showed life insurance premiums at approximately USD 9.9 billion, down marginally year-on-year, while general insurance premiums rose to about USD 6.7 billion. OJK expects premium growth to remain stable to moderate, driven by stronger governance, improved risk management, and product development aligned with consumer needs.
With capital levels well above regulatory requirements, Indonesia’s insurance industry is considered well-positioned to support new products, including travel insurance tailored for foreign visitors. If implemented, the mandatory travel insurance policy could enhance tourist safety while contributing to the long-term resilience of Indonesia’s tourism and insurance sectors.
Source: Kumparan, MediaAsuransiNews
Special Photo Credit: RRI
